Example result based on the prefilled values.
| Result | Value |
|---|---|
| Net Profit After Tax & Entered Pension Payment | £27,168.20 |
| Income Tax | £4,486.00 |
| Class 4 NI | £1,345.80 |
| Total Tax + NI | £5,831.80 |
| Effective Tax + NI Rate | 16.66% |
Continue your plan
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 to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
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 the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Income Tax
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Class 4 NI
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Total Tax + NI
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Effective Tax + NI Rate
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
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 the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
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