Freelance Tax Calculator (2025/26)
Estimate your take-home income after tax and National Insurance for the 2025/26 tax year.
Estimates based on current HMRC rates for 2025/26.
Ready
| Description | Amount (£) |
|---|---|
| Profit Before Tax | £0.00 |
| Income Tax | £0.00 |
| Class 2 National Insurance | £0.00 |
| Class 4 National Insurance | £0.00 |
| Net Income (After Tax) | £0.00 |
Freelancer Tax Rates & Allowances 2025/26
Income Tax Bands (England, Wales & NI)
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance for Freelancers
| NI Type | Threshold | Rate |
|---|---|---|
| Class 2 NI | Profits £6,725+ per year | £3.45 per week |
| Class 4 NI | £12,570 – £50,270 | 8% |
| Class 4 NI | Above £50,270 | 2% |
Allowable Business Expenses
- Office costs (rent, software, phone, internet)
- Travel & mileage
- Marketing & advertising
- Equipment & tools
- Subcontractors
- Professional fees
Expenses reduce your taxable profit — not your tax band thresholds.
How Freelance Tax Works in 2025/26
Freelancers and sole traders pay tax on profits, not income. Profit = total income minus allowable business expenses.
- Income Tax based on profit after expenses.
- Class 2 NI payable if profits exceed £6,725.
- Class 4 NI payable on profits over £12,570.
- You submit your tax through Self Assessment.
- You may need to make Payments on Account for next years tax.
This calculator uses the official 2025/26 HMRC rules for freelancers and sole traders.
Freelancer Tax Examples (2025/26)
Profit: £20,000
- Income Tax: £1,486
- Class 2 NI: ~£180
- Class 4 NI: ~£600
- Total tax: ~£2,266
Profit: £40,000
- Income Tax: £5,486
- Class 2 NI: ~£180
- Class 4 NI: ~£2,200
- Total tax: ~£7,866
Profit: £80,000
- Income Tax: ~£17,500
- Class 2 NI: ~£180
- Class 4 NI: ~£4,400
- Total tax: ~£22,080
Frequently Asked Questions
Yes — freelancers pay tax on profits rather than salary and must complete a Self Assessment tax return.
Yes — you must register with HMRC once your self-employed income exceeds £1,000 in a tax year.
This Freelance Tax Calculator uses HMRC 2025/26 Income Tax and National Insurance rules for UK self-employed individuals and sole traders.