Freelance Tax Calculator UK 2026/27
Use this UK freelance tax calculator to estimate how extra client work, consulting, contracting or project income could affect your 2026/27 tax bill when you also have a PAYE salary.
Income Tax uses England, Wales and Northern Ireland bands. Class 4 NI uses trading profit separately from salary. Scottish taxpayer? Use Scottish rates. Methodology and limitations · Filing deadlines
Calculated estimate
Tax Calculation Results
This estimate used Scottish income tax bands because Scotland is selected.
- Estimated take-home profit
- ~£
- Additional Income Tax
- ~£
- National Insurance
- ~£
| Main Income: | £ |
| Side Hustle Income: | £ |
| Deduction used: | £ |
| Side Hustle Profit: | £ |
| Estimated Additional Income Tax: | ~£ |
| Estimated National Insurance Contributions: | ~£ |
| Estimated Total Additional Tax (Income Tax + NI): | ~£ |
| Estimated Effective Tax Rate (Income Tax + NI): | % |
This estimates additional tax on trading profit, not your total Self Assessment bill. It excludes student loans, pensions, benefits, VAT, loss relief, tailored tax codes and Class 1/Class 4 annual NI maximum adjustments. Class 2 is not added to the bill. Payments on account may affect cash due. Check MTD assessment years and exemptions; this result does not determine eligibility.
How to use this UK freelance tax calculator
This freelance tax calculator UK is for self-employed freelancers — people invoicing clients in their own name as sole traders. It estimates the 2026/27 UK Income Tax and Class 4 National Insurance on freelance profit, optionally added on top of a PAYE salary.
Enter your gross freelance income, the allowable expenses or trading allowance deduction you want to model, and your annual salary. The calculator runs locally in your browser and does not send your financial inputs to our server or analytics.
Not sure whether to call yourself freelance, sole trader or self-employed? The self-employed terminology guide explains how the labels overlap, or you can jump straight to the freelance tax calculator on this page.
Freelance income is normally treated as self-employed trading income when you are working for clients on your own account. If gross trading income is over £1,000 in the tax year, check whether you need to register for Self Assessment.
- Use Side Hustle Income for gross income before expenses or allowances.
- Use Side Hustle Expenses for actual allowable expenses; select the trading allowance separately if eligible.
- Use Annual Salary for your PAYE salary before tax.
Trading Allowance vs Actual Expenses
The trading allowance can exempt up to £1,000 of gross trading income. If your gross trading income is £1,000 or less, you may not need to tell HMRC, although some circumstances still require a tax return.
If gross trading income is more than £1,000, you can usually choose between deducting the £1,000 trading allowance or deducting actual allowable expenses. You cannot claim both for the same trade.
Self Assessment registration and deadlines
If you cross the £1,000 trading allowance you normally need to register for Self Assessment by 5 October after the tax year ends, and file online by 31 January after the tax year. See the main Self Assessment registration and deadlines section for year-specific dates and payments-on-account rules.
Budget for payments on account · MTD assessment years · Higher-rate tax explained
Official Sources
Freelance Tax Calculator UK examples
Example 1
PAYE designer earning £35,000 salary plus £6,000 of freelance projects and £800 of software, equipment and portfolio costs.
Example 2
Part-time consultant earning £55,000 salary plus £15,000 of freelance profit, where some extra income may fall into higher-rate tax.
Example 3
New freelancer testing a small service under or over the £1,000 trading allowance and deciding whether to model the allowance or actual expenses.
FAQs
Do freelancers need to register for Self Assessment?
You normally need to register if your gross freelance trading income is over £1,000 in a tax year, or if HMRC otherwise asks you to file a tax return.
Is the £1,000 trading allowance based on income or profit?
It is based on gross trading income before expenses. If income is above £1,000, you usually choose between deducting the allowance or your actual allowable expenses.
Can I claim laptop, software or home office expenses?
Freelancers can usually claim allowable business costs where they are wholly and exclusively for the trade, with private-use adjustments where needed.
Do I pay Class 4 National Insurance on freelance income?
Class 4 National Insurance is based on self-employed profit above the annual threshold. The calculator estimates it using the 2026/27 rates for England, Wales and Northern Ireland tax planning.
Does PAYE salary affect freelance tax?
Yes. Your freelance profit is added on top of PAYE income, so a salary near the higher-rate threshold can make extra freelance profit taxable at a higher marginal rate.
When do payments on account apply?
Payments on account can apply when your Self Assessment bill is at least £1,000 and 80% or less of the tax was collected outside Self Assessment, for example through PAYE.
More Side Hustle Tax Calculators
Compare other side-hustle scenarios using the same privacy-safe calculator. If you also want a general view across PAYE plus any additional earnings, use the UK extra income tax calculator.
Client work and freelance costs
Count gross receipts from clients before payment-provider fees. Business software, professional insurance, professional fees and the business portion of phone or home-working costs may be allowable. This estimate does not deduct CIS payments or resolve IR35 status.
Worked example for 2026/27
£28,000 client receipts less £3,200 allowable expenses leaves £24,800 profit. With no PAYE salary, Income Tax is £2,446 and Class 4 NI is £733.80 under England, Wales and Northern Ireland rates.
2026/27 rates used by this calculator
Standard Personal Allowance: £12,570. It reduces by £1 for every £2 of income above £100,000. Pension and other adjustments are outside this estimate.
| Band | Band width after Personal Allowance | Income Tax rate |
|---|---|---|
| Basic | First £37,700 | 20% |
| Higher | Next £87,440 | 40% |
| Additional | Remaining taxable income | 45% |
Class 4 NI is 6% on annual self-employed profit above £12,570 up to £50,270, then 2% above £50,270. PAYE salary does not consume these profit bands. The estimate does not apply Class 1/Class 4 annual maximum adjustments.
Class 2 is treated as paid at profits of £7,105 or more; below this, voluntary Class 2 is £3.65 per week. It is not included in the calculated bill.
Income Tax rates · Scottish rates · Current and archived NI rates