Estimate your self-employed
tax in seconds
Estimate your income tax and National Insurance as a sole trader. Enter your income and expenses below to see your full tax breakdown.
Your Income Details
Based on HMRC rates for England & Wales. This is an estimate only — speak to an accountant for advice.
Enter your income to see your breakdown
Your full tax breakdown will appear here including income tax, Class 2 and Class 4 National Insurance.
Income Breakdown
Income Tax Scotland rates
National Insurance
What to set aside
To avoid a surprise bill at Self Assessment, put this aside from every payment you receive:
Reduce your tax bill by tracking expenses automatically with BFSB
Export reports your accountant will actually useBuilt For Small Business helps you record allowable expenses throughout the year, so you're not scrambling at Self Assessment time.
How is self employed tax calculated in the UK?
As a self employed sole trader in the UK, you pay two types of tax: Income Tax on your taxable profit, and National Insurance contributions (Class 2 and Class 4). Unlike employees, no tax is deducted at source, you report and pay via Self Assessment each year.
What is taxable profit?
Your taxable profit is your total income minus your allowable business expenses. The lower your taxable profit, the less tax you pay, which is why recording expenses throughout the year is so important.
Class 2 vs Class 4 National Insurance
Class 2 NI is a flat rate of £3.45 per week (£179.40 per year) if your profits exceed £6,725. Class 4 NI is 6% on profits between £12,570 and £50,270, and 2% on profits above that. Both are paid via your Self Assessment return.