⚡ Statutory HMRC Sole Trader Tax Rules (2025/2026):
• Personal Allowance: £12,570 (0% tax rate).
• Class 4 National Insurance: 6% on profits between £12,570 and £50,270 / 2% on profits above £50,270.
• Trading Allowance: First £1,000 of gross trading income is tax-free.
• Payment on Account: 50% advance tax payments due on 31 January and 31 July.
Sole Trader Tax Evaluator
GOV.UK VerifiedOfficial UK Government References & Legal Sources
- • GOV.UK Self Assessment Tax Rates: gov.uk/self-assessment-tax-rates
- • HMRC Class 4 National Insurance Guidance: gov.uk/self-employed-national-insurance-rates
Sole Trader Rates 2025/2026
Trading Allowance£1,000 / yr
Class 4 NIC Main Rate6%
Class 4 NIC Upper Rate2%