Freelancer Tax Calculator UK
Most freelancers start as sole traders. If you also have a salaried job, add it: your freelance profit sits on top of your salary and may fall into the higher rate.
Tax year 2026/27 · Estimates, not personal tax advice
Salary from a job, before tax
Estimated tax and Class 4 NI
£7,132
| Self-employed profit | £40,000.00 |
| Personal Allowance | £12,570.00 |
| Income Tax on earnings and profit | −£5,486.00 |
| Class 4 National Insurance | −£1,645.80 |
| Total income after tax and NI | £32,868.20 |
Class 2 NI is no longer compulsory. If the bill is over £1,000, HMRC will usually ask for payments on account towards next year too.
Rates and rules used
Tax year 2026/27Default year 2026/27 (6 April to 5 April). 2025/26 and 2024/25 figures are kept for comparison where the calculator offers a year choice.
- Income Tax bands, rates and Personal Allowance2026/27GOV.UK: Income Tax rates and allowances (opens in new tab)
- Class 2 and Class 4 National Insurance2026/27GOV.UK: Self-employed National Insurance rates (opens in new tab)
- Trading allowance2026/27GOV.UK: Tax-free allowances on property and trading income (opens in new tab)
- Self Assessment deadlines and payments on account2026/27GOV.UK: Self Assessment tax returns (opens in new tab)
Independent site, not affiliated with HMRC. Always check GOV.UK for the latest figures.
How this calculation works
- 01Subtract allowable expenses from turnover to find profit.
- 02Add any employment income and dividends.
- 03Apply the Personal Allowance to earnings and profit first.
- 04Tax earnings and profit using your region's bands.
- 05Tax dividends on top using UK dividend rates.
- 06Add Class 4 NI at 6% and 2% on profit.
Real payroll can differ because tax and NI are worked out per pay period, and your tax code may include adjustments HMRC hasn't told you about. See our methodology.
Sole trader or limited company?
A limited company can be more tax-efficient at higher profits, but brings accounting costs, director duties and less flexibility. Compare using our contractor calculator, which models salary plus dividends.
Understanding your freelancer tax calculator result
Freelance income is treated as sole-trader profit unless you operate through a company. Other earnings matter because freelance profit sits on top and can use a higher Income Tax band.
Adding a side project to a day job
Scenario: Enter annual employment income, then freelance turnover and the costs incurred solely for that work.
How to use the result: The extra liability is a better guide to what should be reserved from freelance invoices than applying one flat percentage to turnover.
Details to check before relying on the estimate
- Separate business costs from personal spending.
- Use the trading allowance instead of actual expenses only when it produces the better result.
- Regular work for one client may raise employment-status questions.
Putting the estimate into perspective
Check that the project still makes sense after costs and the estimated tax reserve. An invoice amount is neither profit nor immediately spendable income.
Frequently asked questions
What expenses can freelancers claim?
Costs incurred wholly and exclusively for the business: equipment, software, a share of home costs, professional fees, business travel. Not everyday commuting or personal items.
Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab) · Self-employed National Insurance rates (opens GOV.UK in a new tab)
Do I need to register as self-employed as a freelancer?
If you earn trading income above the threshold set by HMRC, you generally need to register for Self Assessment. The trading allowance and other rules can change the answer, so check GOV.UK.
Check it on GOV.UK: Self Assessment tax returns (opens GOV.UK in a new tab) · Tax-free allowances on property and trading income (opens GOV.UK in a new tab)
Should I set money aside for tax?
Yes. Freelance income is paid without tax deducted, so many freelancers put a share of each invoice into a separate account. The calculator helps you choose a sensible amount.
Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab) · Self-employed National Insurance rates (opens GOV.UK in a new tab)
Related calculators
- Self Employed Tax Calculator — Plan tax and NI for a full-time sole-trader business.
- Contractor Tax Calculator — Compare sole trading with company or umbrella routes.
- Self Assessment Calculator — Bring freelance profit together with every taxable income source.
Related guides
- Tax for the Self-Employed — How sole traders are taxed in the UK: Income Tax on profit, Class 4 NI, allowable expenses and payments on account.
- Tax on Side Hustle Income — When side hustle income becomes taxable, the £1,000 trading allowance, and how platform reporting rules work.