SoleTraderTaxCalculator
Updated for 2026/27

Freelancer tax calculator

Whether you charge day rates, project fees or hourly rates, estimate the tax on your freelance profit and how much to set aside each month from 2026/27 earnings.

Updated for 2026/27. Uses UK tax bands and HMRC/GOV.UK guidance. Estimates only — not tax advice.

Calculate sole trader tax Read the guides
Freelance profitClass 4 NIMonthly set-asideDay rate mode
2026/27 tax year England, Scotland, Wales & NI Student loan support Practical reserve figure

Freelancer tax calculator

Tax from freelance income — day rate, hourly or annual — 2026/27

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you earn?

Enter profit after allowable business expenses — not total turnover.

The annual profit used in calculations will be monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£
£36,568take-home / year£3,047/mo
Monthly net
£3,047
Tax set-aside
£703
Quarterly reserve (estimate)
£2,108
Take-home£36,568
Income Tax£6,486
National Insurance£1,946
Student loan£0
Pension£0
Show detailed breakdown ▼
Income tax£6,486.00
Class 4 National Insurance£1,945.80
Student loan£0.00
Pension contribution£0.00
Take-home after tax£36,568.20
Monthly tax set-aside£702.65
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HMRC 2026/27 · Methodology

Employed too, or a company director? Get all 7 tax packs in the Tax Pack Library — £9.99 

Payments on account

Your Self Assessment payment timeline

Based on your estimated bill of £0 for 2026/27, here is when HMRC expects payment — and why your first January bill can feel much bigger than the tax itself. Estimate only — your exact HMRC figures may differ.

31 January
£0
Balancing payment £0 + first payment on account £0
31 July
£0
Second payment on account
Following 31 January
£0
Next balancing payment + first payment on account for the following year
Tax year
ends 5 Apr 31 Jan 31 Jul Next
31 Jan
Set aside each month (ongoing)
£0
Set aside in your first payment-on-account year
£0
Why your first Self Assessment payment can feel higher
The first time you owe £1,000 or more, your 31 January bill includes two things: the full tax bill for the year just finished (the "balancing payment"), plus your first payment on account towards the next year — normally half of this year's income tax and Class 4 NI. That combination is why the first January can feel like roughly 150% of the tax itself.
What payments on account are
Payments on account are advance payments towards your next Self Assessment bill. There are usually two — one due 31 January and one due 31 July — and each is normally half of your previous year's income tax and Class 4 National Insurance. (Class 2 NI, student loan repayments and Capital Gains Tax are not included in payments on account; they are paid in the balancing payment.)
When you might not need to make them
You normally do not make payments on account if your last Self Assessment bill (income tax and Class 4 NI) was under £1,000, or if more than 80% of the tax you owe was already collected at source (for example through PAYE). You may also be able to ask HMRC to reduce your payments on account if you expect your next bill to be lower — but reducing them too far can lead to interest, so check your figures carefully.
Why your exact HMRC bill may differ
This is an estimate based on the figures you entered. Your real Self Assessment bill depends on your full tax position, allowable expenses, other income, reliefs and any adjustments. Always check your actual figures in your HMRC online account before making a payment. This tool does not give personalised tax advice.
About this calculator

Tax from freelance income

Freelancers are typically self-employed sole traders, which means they pay income tax and Class 4 NI through Self Assessment on their taxable profit after expenses. The day rate mode makes it easy to start from a contract rate rather than having to pre-calculate annual profit.

If you charge a mix of day rates and project fees, use the annual mode and enter expected profit after estimated expenses. The set-aside figure gives you a monthly target for the tax reserve regardless of how income arrives.

Last updated July 2026. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance. Estimates for planning only — not tax, accounting or financial advice.

Freelancer tax — questions

Do all freelancers file Self Assessment?
Yes, if they earn above £1,000 trading income in a tax year. As a freelancer, you register as self-employed, file an annual Self Assessment return and pay income tax and Class 4 NI on taxable profit.
Can I use this for a mix of day rate and project work?
Yes. Use the annual profit mode and enter your best estimate of total profit after all business expenses, regardless of how that income was earned. The tax calculation is the same whether income came from a long day-rate contract or multiple shorter projects.
Should a freelancer use a limited company?
Possibly, at higher income levels. The tax comparison depends on profit level, how much you extract versus retain, and whether the extra admin burden is worthwhile. Use LimitedCompanyTaxCalculator.co.uk with the same profit figure to compare.
Self-Employed Tax Calculator UK
Estimate income tax, Class 4 National Insurance and take-home pay from self-employed income for 2026/27. Covers freelancers, contractors and sole traders.
Sole Trader Tax Calculator
Estimate sole trader income tax, Class 4 National Insurance and take-home profit for 2026/27.
Self Assessment Calculator UK
Estimate your Self Assessment tax bill from sole trader profit and plan for January and July payment deadlines.
Tax Set-Aside Calculator UK
Calculate how much to set aside each month from sole trader profit to cover income tax and National Insurance for 2026/27.
Take-Home Profit Calculator
Estimate how much of your sole trader profit remains after income tax, NI and optional deductions for 2026/27.
Self-Employed National Insurance Calculator 2026/27 (Class 4)
Class 4 NI for 2026/27: 6% on profit from £12,570 to £50,270, 2% above. £30,000 profit pays £1,045.80. Free sole trader NI calculator with band breakdown.
Sole Trader Expenses 2026/27: What You Can Claim and What It Saves
What sole traders can claim in 2026/27: the wholly-and-exclusively test, 55p mileage, home working, equipment. Each £1 claimed saves about 26p at basic rate.
Making Tax Digital for sole traders
What Making Tax Digital for Income Tax means in practice, who it affects, income thresholds, digital record requirements and how to prepare.
Payments on Account 2026/27: Dates, 150% First Bill, SA303
Payments on account are two 50% advances due 31 January and 31 July. Why the first January bill is 150%, the £1,000 and 80% exemptions, and reducing them with SA303.
Self Assessment deadlines for sole traders
The key filing and payment deadlines sole traders must know, what late filing costs, and how to use your tax estimate to prepare in advance.

Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.

Making Tax Digital

MTD for Income Tax

From 6 April 2026, Making Tax Digital for Income Tax is mandatory for sole traders and landlords with qualifying income over £50,000. That means keeping digital records and sending HMRC a short update every quarter through recognised software, instead of one Self Assessment at year end. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028, and HMRC reckons around 860,000 people are in the first wave.

HMRC-recognised software includes FreeAgent, Xero, QuickBooks, Sage and Zoho Books. FreeAgent is free for Mettle and NatWest business banking customers. There are no penalties for late quarterly updates during 2026/27.

Getting set up

Business bank accounts

Keeping a separate account for business income and expenses makes Self Assessment and record-keeping considerably easier.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - eligible deposits are FSCS protected up to £120,000 per eligible depositor, per authorised bank (brands sharing one banking licence share one limit). As a sole trader your business and personal accounts at the same bank count towards one £120,000 limit. Accepts sole traders and limited companies. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier. Accepts businesses with no trading history. Funds are safeguarded as e-money, not FSCS protected.
Open an account →
Mettle by NatWest
Free for sole traders and single-director limited companies. Includes FreeAgent bookkeeping at no extra cost - useful for MTD record-keeping. Funds safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →

Thinking of going limited? Compare first: with 2026/27 rates, a sole trader who takes all the profit out usually keeps more. If you already run a company, the Director's Pay & Tax Pack (£4.99) covers salary versus dividends, the director's loan account and year-end planning for 2026/27.