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See your income tax and Class 4 NIC breakdown — with tradesperson-specific expense categories. Updated for 2025/26.
Your total turnover before expenses — this is also what HMRC uses for MTD thresholds.
Personal pension contributions reduce your taxable income.
UK sole traders pay income tax at 20% on profits between £12,571 and £50,270, 40% on profits between £50,271 and £125,140, and 45% above that. You also pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% above that.
The personal allowance for 2025/26 is £12,570. You pay no income tax on profits below this amount. The allowance tapers by £1 for every £2 of income above £100,000.
UK sole traders can claim: tools and equipment, vehicle costs (mileage at HMRC approved rates, or actual costs), materials and supplies, workwear and PPE, phone and broadband (business portion), and accountancy fees. You must keep records of all business expenses.
Class 4 NIC is paid by self-employed people at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. It is paid via Self Assessment alongside your income tax bill.
The deadline to file your online Self Assessment tax return is 31 January following the end of the tax year (which runs 6 April to 5 April). Payment is also due on 31 January, with a payment on account due on 31 July.