Free tool
Tax Reserve Calculator
Work out what to move into the tax pot every time you get paid.
This gives a conservative planning percentage so the bill is already funded when it arrives. It is not a tax computation and it cannot account for your allowances, reliefs or other income.
Last reviewed:
Your result
£13,500
Suggested annual reserve, including VAT collected
A planning percentage of 30% on profit.
- Tax-year VAT configurationhttps://www.gov.uk/vat-rates
- 2026/27
- Planning percentage on profitSole-trader planning reserve
- 30%
- Reserve against profit
- £13,500
- VAT collected (not your money)
- £0
- Already reserved
- £0
- Still to set aside
- £13,500
- Weekly transfer to close the gap over a year
- £260
- Percentage of every payment receivedA simple rule for the weekly transfer habit
- 30%
Move this money on the day you are paid, not at the end of the month. The pot should be a separate account or savings space you never spend from.
These are cautious planning figures. Your actual liability depends on allowances, reliefs, dividends, other income and current rates — confirm with an accountant or current HMRC guidance.
Use the reserve as a planning estimate
The result is an indicative reserve based on the selected tax year, expected profit and the VAT treatment shown in the inputs. It is not a tax return, liability calculation or substitute for the figures in your HMRC account and completed records.
Separate VAT money from income-tax, National Insurance or Corporation Tax planning. Reconcile the estimate to actual sales, allowable costs, payroll, dividends and payments already made, and update it when the business structure or tax year changes.
- Treat the result as a cash-planning starting point, not a final bill.
- Check the current tax-year assumptions and source links before relying on a figure.
- Seek qualified help where records, structure, reliefs or director transactions make the estimate uncertain.
Assumptions this tool makes
- Uses a deliberately cautious planning percentage band rather than calculating your actual liability.
- If you are VAT registered on standard accounting, VAT collected is treated as never being your money.
- Allowances, reliefs, losses and other personal income are not modelled.
The formulas used
- vat_element = receipts_including_vat - (receipts_including_vat / (1 + selected_standard_VAT_rate)) [if registered]
- planning_reserve = net_receipts x planning_percentage
- weekly_transfer = annual_reserve / 52
Estimates only. This is a planning aid, not regulated financial advice, tax advice or a personal recommendation. Figures are rounded deliberately to avoid false precision. Your answers stay in your browser: nothing you type here is sent to us, to a partner or to an advertising platform. Read the full disclaimer.