Sole Trader Tax Calculator UK

Want to know how much tax you’ll pay as a sole trader in the UK? Use our free UK Sole Trader Tax Calculator to quickly estimate your income tax and National Insurance based on your yearly turnover and business expenses.

UK Sole Trader Tax Calculator (2024/25)

Annual Turnover (£):

Business Expenses (£):

Who Is This Calculator For?

This calculator is ideal for:

Self-employed individuals in the UK
Freelancers, contractors, and gig workers
Anyone operating as a sole trader for HMRC

It’s built around UK tax rules for the 2024/25 tax year and considers:

Personal Allowance tapering after £100,000
Income tax rates: 20%, 40%, and 45%
Class 2 and Class 4 National Insurance

How It Works

Just enter:

Your total annual turnover (all income)
Your business expenses (equipment, travel, insurance, etc.)

The calculator will:

Work out your profit (turnover – expenses)
Subtract your Personal Allowance
Calculate how much Income Tax and NI you owe

Why Use This Calculator?

✅ 100% free and instant
✅ No sign-up or email needed
✅ Accurate for the 2024/25 UK tax year
✅ Perfect for budgeting and tax planning

Calculate Your Self-Employed Tax Now

Use the calculator below to get a clear idea of how much tax you’ll pay this year. It’s fast, simple, and updated with the latest HMRC thresholds.

Frequently Asked Questions

How much tax do I pay as a sole trader in the UK?

As a sole trader, you pay income tax and National Insurance (Class 2 and Class 4) on your profits (turnover minus expenses). The amount depends on your total profit and follows the HMRC tax bands for the 2024/25 tax year.

What expenses can I deduct as a sole trader?

You can deduct business-related expenses like office supplies, tools, travel costs, marketing, insurance, phone bills, and professional services. This reduces your taxable profit and lowers your tax bill.

When do I need to register as a sole trader?

You must register with HMRC as a sole trader if you earn more than £1,000 from self-employment in a tax year. Registration is done online through the HMRC website.

Do sole traders pay VAT?

Only if your turnover exceeds £90,000 (2024 threshold) in a 12-month period. Below that, VAT registration is optional unless you work in a sector where it’s required.

How do I file a tax return as a sole trader?

You’ll need to complete a Self Assessment tax return each year (usually due by 31st January). You report your income, expenses, and pay any tax owed. You can file online via your HMRC account or use an accountant.