Freelance Take-Home Calculator (UK, After Tax)

Estimate UK freelance take-home pay after a tax set-aside: the day rate you need for a target net income, or the net income from a rate.

Required billable hourly rate£55.23
Equivalent day rate£441.85
Gross revenue needed£71,138.46
Tax to set aside£13,538.46

Estimate only, not tax advice. The set-aside is a single percentage for tax and social contributions - it does not model brackets, VAT, or deductions, which vary by income, region, and circumstances. Confirm with an accountant.

Rate, costs, tax, and take-home

In the UK, employees are taxed through PAYE with income tax and National Insurance, while a sole trader pays income tax and Class 2 and 4 National Insurance on profit. The default is a rough average; a limited company is taxed differently and is not modelled here.

A freelance rate has to cover more than your target income. Business costs come off the top, and tax and social contributions come out of the profit, so the rate you bill is well above the money you keep. This tool works in both directions: the rate needed for a target take-home, or the take-home implied by a rate.

The set-aside percentage is pre-filled with a rough average for the country you pick (2026) and is yours to change. It is a planning estimate, not a tax return.

Country questions

Sole trader or limited company?

This compares an employee with a sole trader. A limited company is taxed through corporation tax and a salary and dividend split, which is not modelled here - ask an accountant.