Work Out What You Take Home
A £45,000 turnover is not a £45,000 take-home income. Materials, van costs and the rest of running the business come out before personal tax.
A complete worked example
| Assumed year | Amount |
|---|---|
| 180 paid days at £250 | £45,000 revenue |
| Materials and other direct job costs | −£12,000 |
| Van, insurance, tools and other overhead | −£9,000 |
| Business profit before personal tax | £24,000 |
The figures are illustrative. They show why comparing a self-employed daily charge with an employed salary is misleading. Unpaid holidays, quoting and gaps also reduce the paid days.
Which change makes a difference?
- Already fully booked: improving price or cutting avoidable travel can help more than another job.
- Empty worthwhile days: filling those days can help without extending the working week.
- Plenty invoiced, little cash: unpaid invoices are a collection problem, not proof you need more enquiries.
What is yours to spend?
For a sole trader, profit and money drawn from the bank are not the same thing as an employee's payslip. Leave the money needed for tax and upcoming business bills in the business calculation. Your personal tax depends on your circumstances and where in the UK you live.
The pricing example works backwards to a day rate. GOV.UK explains the self-employed setup.
Updated 29 October 2026 · Report a factual error