Calculate your net take-home pay as a UK sole trader after Income Tax and Class 4 National Insurance. Compare with PAYE employment.
Enter your annual gross profit
Type your profit after allowable business expenses — not your turnover. Common expenses: accountancy, equipment, workspace, professional insurance, travel.
Add pension contributions
Optional: enter any personal pension contributions. These reduce your taxable income and Class 4 NI base.
Review the breakdown
See Income Tax and Class 4 NI split, effective deduction rate, and monthly take-home.
Compare with PAYE
The calculator also shows what a PAYE employee on the same income would take home for comparison.
A sole trader earning £45,000 profit takes home more per pound than an employee on £45,000 salary, because Class 4 NI is lower than employee NI and there is no employer NI at all. Full 2026/27 comparison.
Most sole traders can now use cash basis accounting regardless of turnover, but the choice still has real tax timing consequences. Here's how the rules work for 2026/27 and when accruals is still the better fit.
Construction Industry Scheme deductions are 20%, 30% or 0% depending on your registration and verification status with HMRC. Here's exactly how contractors determine which rate to apply to a subcontractor.
Disclaimer: All results are estimates for guidance only and do not constitute financial, tax or legal advice. Always consult a qualified professional.
