How much tax should I put aside as a sole trader?

In England, Wales and Northern Ireland, each £100 of profit between £12,570 and £50,270, if this is your only income, carries £20 Income Tax and £6 Class 4 National Insurance; profit up to £12,570 carries none. GOV.UK rates GOV.UK NI Add your figures for an estimate of what to put aside from each payment, including Scottish rates.

£26 per £100 of profit, £12,570 to £50,270, England, Wales and NI

Work out your set-aside

This calculator needs JavaScript, which is turned off or blocked in your browser. The figures above still apply: in England, Wales and Northern Ireland, put aside about £26 from each £100 of profit between £12,570 and £50,270 if this is your only income.

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Add your figures to see how much to put aside.

Uses 2026 to 2027 rates and allowances, last checked 10 October 2026.

Estimate only. This calculator gives a rough figure to help you decide how much to put aside. It isn't tax advice, and Plaincolumn isn't HMRC-recognised software. Your actual bill depends on your full circumstances and is worked out on your Self Assessment return. You remain responsible for your figures and submissions. Not affiliated with HMRC.

How this estimate works

We take the £12,570 personal allowance off your yearly profit, apply the Income Tax bands for where you live, then add Class 4 National Insurance. GOV.UK rates GOV.UK NI

Includes: Income Tax at the rates for England, Wales and Northern Ireland, or Scotland if you choose it; the personal allowance, including the reduction for income over £100,000; and Class 4 National Insurance.

Doesn't include: other income such as a salary, pension, rental or savings income; student loan repayments; Class 2 National Insurance; payments on account; the High Income Child Benefit Charge; reliefs, allowances or losses other than the personal allowance. If any of these apply to you, your bill may be different.

Rates come from GOV.UK:

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Questions people ask

How much tax should I put aside as a sole trader?

It depends on your profit and where you live. In England, Wales and Northern Ireland for 2026 to 2027, if this is your only income, profit from £12,570 to £50,270 has 20% Income Tax plus 6% Class 4 National Insurance, and profit from £50,270 to £100,000 has 40% plus 2%. Between £100,000 and £125,140 you also lose £1 of personal allowance for every £2 of profit over £100,000, so the effective rate there is 60% plus 2%. GOV.UK rates GOV.UK NI

Is sole trader tax different in Scotland?

Yes for Income Tax: if you live in Scotland you pay Scottish Income Tax, with six bands from 19% to 48% for 2026 to 2027. GOV.UK Scotland Class 4 National Insurance uses the same 6% and 2% rates. GOV.UK NI

Do I need to pay tax on my first £1,000?

Not if your gross trading income for the year is £1,000 or less, because the trading allowance is a tax exemption of up to £1,000. GOV.UK trading allowance GOV.UK rates Above that, you can deduct the £1,000 instead of your actual expenses, and you must register for Self Assessment. GOV.UK trading allowance This calculator doesn't include it.

Do sole traders pay National Insurance?

Yes: Class 4 at 6% on profits from £12,570 to £50,270 and 2% above, for 2026 to 2027. GOV.UK NI If your profits are £7,105 or more, Class 2 is treated as paid. GOV.UK NI

When do I pay the tax I've put aside?

By 31 January after the tax year ends, so 2025 to 2026 tax is due by 11:59pm on 31 January 2027. GOV.UK deadlines Payments on account, if you make them, are due 31 January and 31 July; this calculator doesn't include them. GOV.UK payments on account