Self Employed Tax Calculator

As a sole trader, you're taxed on your trading profit - turnover minus allowable business expenses - rather than on turnover itself. That profit is added to any other taxable income you have, and Income Tax is charged through the same Personal Allowance and tax bands as employees.

Class 4 National Insurance

On top of Income Tax, self-employed profit above the Lower Profits Limit is charged Class 4 National Insurance at the main rate, with a lower additional rate above the Upper Profits Limit - the same band shape as employee National Insurance, just calculated on annual profit through Self Assessment rather than deducted from a payslip.

Class 2 National Insurance

Class 2 National Insurance is no longer compulsory for anyone. If your profit is above the small profits threshold, you get a qualifying year towards your State Pension automatically, at no cost. If it's below that threshold, you can choose to pay Class 2 voluntarily to keep building your record.