As a self-employed sole trader, taxes like Income Tax and National Insurance Contributions (NICs) can feel tricky. ToolHubX’s free Self-Employed Tax Calculator simplifies it into a 3-step process—perfect for 2025/26 planning.
Step 1: Calculate Profit—Total income minus expenses. Earn £40,000 and spend £8,000 on costs (e.g., travel)? That’s £32,000 profit. Step 2: Apply Tax Rates—For 2025/26, £12,570 is tax-free (Personal Allowance), so £19,430 is taxable at 20% (£3,886). Add NICs: Class 2 (£179.40/year) and Class 4 (9% on £19,430, £1,748.70). Total tax: £5,814.10. Step 3: Check Take-Home—£32,000 - £5,814.10 = £26,185.90.
Enter £40,000 income and £8,000 expenses into the calculator, click "Recalculate," and see this breakdown instantly—HMRC-compliant for estimates, not filings. It’s quick, free, and built to save you time. Test it out and let us know what you think at support@toolhubx.uk!