Freelance Tax Calculator (2025/26)

Estimate your take-home income after tax and National Insurance for the 2025/26 tax year.

Total Income (£)

Allowable Expenses (£)

Region

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%

These bands apply in England, Wales and Northern Ireland. Scottish freelancers pay different rates — use our Scotland Income Tax Calculator. Full band details are on GOV.UK – Income Tax rates and allowances.

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%

NI rates for the self-employed are published on GOV.UK – Self-employed National Insurance rates. Use our National Insurance Calculator to estimate your NI bill.

Allowable Business Expenses

Office costs (rent, software, phone, internet)
Travel & mileage
Marketing & advertising
Equipment & tools
Subcontractors
Professional fees

The full list of allowable expenses is on GOV.UK – Expenses if you are self-employed.

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. Use our Self-Employment Tax Calculator for a full breakdown.
Class 2 NI payable if profits exceed £6,725. See GOV.UK – Self-employed NI rates.
Class 4 NI payable on profits over £12,570.
You submit your tax through Self Assessment. Register at GOV.UK – File your Self Assessment return.
You may need to make Payments on Account towards next year 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

If your freelance work involves VAT-registered turnover above £90,000, use our VAT Calculator. Limited company contractors should also see our Corporation Tax Calculator.

Frequently Asked Questions

Yes — freelancers pay tax on profits rather than salary and must complete a Self Assessment tax return each year. Employees have tax deducted via PAYE automatically. Use our PAYE Tax Calculator to compare.

Yes — you must register with HMRC as a sole trader once your self-employed income exceeds £1,000 in a tax year (the Trading Allowance). Registration is free and done online.

The online Self Assessment deadline for the 2024/25 tax year is 31 January 2026. Paper returns must be filed by 31 October 2025. Late filing incurs an automatic £100 penalty from HMRC — see GOV.UK – Self Assessment deadlines.

At higher profit levels a limited company can be more tax-efficient due to lower Corporation Tax rates versus Income Tax, and the ability to pay yourself via dividends. Use our Small Business Tax Calculator to compare scenarios, or see GOV.UK – Set up a limited company.

This Freelance Tax Calculator uses HMRC 2025/26 Income Tax and National Insurance rules for UK self-employed individuals and sole traders. Related tools: Self-Employment Tax Calculator, National Insurance Calculator, VAT Calculator.

Freelance Tax Calculator 2025/26