Freelance Rate Calculator — United Kingdom
UK sole traders pay Income Tax through Self Assessment plus Class 4 National Insurance (6% on profits between £12,570 and £50,270, then 2%). Your first £12,570 is covered by the Personal Allowance, but it tapers away once profits pass £100,000. Payments on account — advance payments toward next year’s bill each January and July — catch many first-year freelancers off guard, so set aside more than your headline rate.
Tax estimate: 2026/27 tax year (England, Wales & NI). Details in theUnited Kingdom tax calculator.
What UK freelancers need to price in
- Class 2 NICs are now treated as paid for most self-employed people; Class 4 is the one that costs you.
- The Personal Allowance shrinks by £1 for every £2 of profit above £100,000 — an effective 60% band to £125,140.
- Scotland has different income tax bands — this estimate uses rUK rates.
- If your turnover exceeds £90,000 you must register for VAT.
Data reviewed: August 2026. Primary source:GOV.UK — Self Assessment tax rates.
Worked example
Targeting £60,000 pre-tax with£4,000 of annual costs, billing 25 hours a week with 6 weeks off, gives a billable year of 1,150 hours. The calculator adds your margin, divides, and also estimates the tax bite on that income under the 2026/27 tax year (England, Wales & NI) — so you can see in one glance what the rate on your invoices turns into in your pocket.
Frequently asked questions
What is a good freelance hourly rate in the United Kingdom?
There is no universal “good” rate — it depends on your field, seniority and clients. What matters is that your rate covers your target income, your business costs, your unbillable time, and the tax profile described below. Use the calculator above with honest inputs; a UK freelancer billing 25 hours a week with 6 weeks off needs a rate roughly double the equivalent employee hourly wage to end up in the same place.
How much should a UK sole trader set aside for tax?
Roughly 25–30% of profit is a safe rule for basic-rate freelancers, rising to 35–42% once you cross into higher rate. Remember payments on account: in your first year of Self Assessment you may effectively pay 150% of one year’s bill in a single January.
Is this rate before or after tax?
Before tax. The target income you enter is pre-tax income; the calculator tells you what to bill to reach it. To see what you'll keep, run your profit through the United Kingdom Tax Set-Aside Calculator linked below.
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Estimates for planning only — not tax or financial advice. Tax calculation is simplified (see the tax calculator for assumptions) and excludes state/provincial variations where noted. Full disclaimer.