Free UK rate and tax calculators
You are almost certainly undercharging.
Freelancers price by taking a salary they would be happy with and dividing by the days in a year. That sum quietly forgets holiday, sick days, pensions, business costs, and every day spent working without invoicing. Here is the arithmetic as it actually is.
No sign-up, nothing stored, nothing to buy. 2026/27 HMRC rates.
What you need to charge
Assuming 33 days of holiday, 5 sick days, 70% of the remaining time billable, and £4,000 of business costs.
Your circumstances are not the average. Put your own numbers in.
| To take home | You must invoice | Billable days | Day rate |
|---|---|---|---|
| £30,000 | £40,124 | 155 | £258 |
| £40,000 | £53,638 | 155 | £345 |
| £50,000 | £70,704 | 155 | £455 |
| £60,000 | £87,946 | 155 | £566 |
| £80,000 | £131,282 | 155 | £845 |
Three things the usual sum leaves out
Unbillable days
Pitching, invoicing, admin, marketing and the gaps between contracts are real work that no client pays for. They come out of the days that do get billed.
Benefits you now fund
Holiday, sick pay and pension contributions used to be someone else's line item. They are yours now, and they belong inside your rate.
Tax arriving late
The whole invoice lands in your account and feels like income. The bill for it turns up months later, sometimes with a payment on account attached.