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Sole trader income tax computation

List a year's income and expenses, and get the taxable profit, the tax on each band, personal relief and the balance after tax already paid.

Sole trader income tax computation template

A sole trader pays income tax on profit at the individual rates. This workbook collects the year's income and allowable expenses, works out the taxable profit, applies each tax band in turn, subtracts personal relief and shows the tax payable and the balance after any tax already paid, with every step visible.

Self-employed people, small traders and professionals who file their own annual return, and accountants who prepare returns for them, who want a clear computation.

What is included

  • Income and expenses lists with categories
  • Tax worked out band by band
  • Personal relief for the year
  • Balance after tax already paid
  • Rates sheet with the bands you can edit

Screenshots

  • Income received of Sole trader income tax computation
  • Allowable expenses of Sole trader income tax computation
  • Expenses by category of Sole trader income tax computation

How to use it

  1. Check the bands and relief on the Rates sheet.
  2. Enter each receipt on the Income sheet and each cost on the Expenses sheet.
  3. On the Tax sheet, add tax already paid, such as instalments or withholding tax.
  4. Read the tax payable and the balance due or refundable.

Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.

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What the sole trader income tax computation does

A sole trader pays income tax on profit at the individual rates. This workbook collects the year's income and allowable expenses, works out the taxable profit, applies each tax band in turn, subtracts personal relief and shows the tax payable and the balance after any tax already paid, with every step visible.

Who it is for

Self-employed people, small traders and professionals who file their own annual return, and accountants who prepare returns for them, who want a clear computation.

How to use the workbook

  1. Check the bands and relief on the Rates sheet.
  2. Enter each receipt on the Income sheet and each cost on the Expenses sheet.
  3. On the Tax sheet, add tax already paid, such as instalments or withholding tax.
  4. Read the tax payable and the balance due or refundable.
  5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

  • Income and expenses lists with categories
  • Tax worked out band by band
  • Personal relief for the year
  • Balance after tax already paid
  • Rates sheet with the bands you can edit

The workbook has these sheets: Instructions, Tax, Income, Expenses, Expenses summary, Rates. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

  • Claim only expenses that were incurred for the business.
  • Keep every receipt, and an eTIMS invoice where the supplier gives one.
  • File and pay by 30 June for the previous year.
  • Compare with turnover tax if your income is within its limits.

Why keep this record

Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.

Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Sole trader vs company calculator, Freelancer tax calculator. See more tax templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

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