Work out your Income Tax, Class 4 & Class 2 National Insurance and take-home as a UK sole trader — and see whether you're in scope for Making Tax Digital. No sign-up.
As a sole trader you pay Income Tax on your profit (turnover minus allowable expenses) above the £12,570 personal allowance — 20% up to £50,270, 40% to £125,140, then 45%. On top of that you pay Class 4 National Insurance: 6% on profit between £12,570 and £50,270, and 2% above that.
Class 2 National Insurance is treated as paid (£0) once your profit is over the Small Profits Threshold; below it you can pay voluntarily to protect your State Pension. Income Tax and Class 4 are on profit — but the Making Tax Digital threshold is on turnover, which is why a high-revenue, low-margin business can be mandated for MTD even with a modest profit.
Related: Am I in scope for MTD? · What counts as qualifying income
Estimate only, not tax advice. England/Wales/NI rates. Based on HMRC rates as at June 2026.