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Useful next calculations
Rates & sources2026/27
2026/27 sole-trader estimate using Income Tax, Class 4 National Insurance and an optional relief-at-source pension payment. Voluntary Class 2 is not added.
| Band / figure | Rate |
|---|---|
| Class 4 main rate | 6% · £12,570 – £50,270 profit |
| Class 4 additional rate | 2% above £50,270 |
| Voluntary Class 2 | £3.65 a week — excluded |
Source: GOV.UK — National Insurance: how much you pay — source checked for 2026/27.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution or salary-sacrifice option.
- When you want a simple take-home estimate before payroll or filing.
- When you are approaching the £100,000 income level and want to see the personal allowance taper.
- When you need to convert between hourly, monthly and annual pay.
Worked example: £55,000 income, £5,000 expenses
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Gross income | £55,000 |
| Less expenses | £5,000 |
| Taxable profit | £50,000 |
| Personal Allowance | £12,570 |
| Income tax (£37,430 × 20%) | £7,486 |
| Class 4 NI (£37,430 × 6%) | £2,246 |
| Total tax + NI | £9,732 |
| Net profit | £40,268 |
The effective rate in this simple example is 19.5%. Profit above £50,270 can fall into a 40% Income Tax and 2% Class 4 NI marginal band, subject to allowances and the rest of your tax position.
How to read your results
Net Profit After Tax & Entered Pension Payment
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Income Tax
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Class 4 NI
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Total Tax + NI
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Effective Tax + NI Rate
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Method & assumptionsAuthoritative sources
This calculator estimates 2026/27 Income Tax and Class 4 National Insurance for a sole trader in England, Wales or Northern Ireland. Enter trading income and allowable expenses; the model calculates taxable profit before pension contributions, as HMRC does not treat an ordinary personal pension payment as a business expense. A relief-at-source pension payment is grossed up to extend the basic-rate band and reduce adjusted net income, while its net cash cost is shown in the remaining profit figure.
Voluntary Class 2 is deliberately excluded. The calculator does not cover employment income, Scotland, student loans, HICBC, VAT, losses, capital allowances, partnership allocations, basis-period rules or a complete Self Assessment return. Verify the result with HMRC or a qualified accountant before filing or choosing a pension contribution.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking National Insurance or student-loan plan differences that apply to you.
What to do next
- Check the same scenario with related pay or deduction calculators.
- Keep a copy of the assumptions so you can compare the next tax year or pay period.
- If you are self-employed, compare this result with the self-employment tax calculator.
- Check whether a small pension contribution change moves take-home pay more than you expect.
Frequently asked
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