Calculate your sole trader or freelancer take home pay after income tax, Class 2 & 4 National Insurance, and student loan repayments.
If you're a sole trader or freelancer, you pay tax on your profits — that's your revenue minus allowable business expenses. You're responsible for paying both income tax and National Insurance through Self Assessment.
Unlike employees, self-employed workers pay Class 2 and Class 4 National Insurance instead of Class 1.
| Type | Threshold | Rate |
|---|---|---|
| Class 2 NI | Profits above £12,570 | £3.45/week (£179.40/year) |
| Class 4 NI (lower) | £12,570 – £50,270 | 6% |
| Class 4 NI (upper) | Above £50,270 | 2% |
You can deduct legitimate business costs from your revenue before calculating tax. Common examples include office costs (stationery, phone bills), travel expenses, professional subscriptions, accounting fees, and the cost of goods you sell. HMRC has detailed guidance on what qualifies.
Self-employed workers currently pay lower National Insurance rates (6% vs 8% for employees between the thresholds). However, you don't get employer pension contributions, sick pay, or holiday pay. Use our employed take home pay calculator to compare.