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FreelanceRateUK · 2026/27

Methodology

Every figure, and where it came from.

A calculator you cannot check is just an opinion with a number on it. These are all the rates behind 2026/27, each linked to the GOV.UK page it was taken from, along with what the calculators deliberately do not model. This page is generated from the same table the calculators use, so it cannot fall out of step with them.

Rates last checked against GOV.UK on 2026-08-29.

Personal allowance
£12,570
Allowance taper starts
£100,000
Allowance fully withdrawn
£125,140
Basic rate
20% on the first £37,700 of taxable income
Higher rate
40% above £50,270
Additional rate
45% above £125,140

Self-employed National Insurance

gov.uk/self-employed-national-insurance-rates
Class 4 lower limit
£12,570
Class 4 main rate
6% up to £50,270
Class 4 upper rate
2% above £50,270
Class 2
Abolished as a compulsory charge. Voluntary at £4 a week
Small profits threshold
£7,105, above which Class 2 counts as paid
Small profits rate
19% up to £50,000
Main rate
25% from £250,000
Marginal relief fraction
3/200 between the two limits
Dividend allowance
£500
Ordinary rate
11%, raised from 8.75% on 6 April 2026
Upper rate
36%, raised from 33.75% on 6 April 2026
Additional rate
39%
Employer rate
15% above £5,000
Employee rate
8% between £12,570 and £50,270
Employee upper rate
2% above £50,270
Apprenticeship levy
1%
Employment allowance
£10,500, not applied here (see below)
Registration threshold
£90,000
Deregistration threshold
£88,000
Standard rate
20%
Cars and goods vehicles
55p per mile for the first 10,000 miles
Cars, above the limit
25p per mile
Motorcycles
24p per mile, with no step

What we leave out

Scotland. Scottish taxpayers have their own income tax bands with five rates rather than three. Every figure here uses the England, Wales and Northern Ireland bands, so a Scottish freelancer should treat the income tax portion as indicative only.

Student loan repayments. These behave like an extra marginal rate of 9% above a plan-specific threshold, and they are not modelled. If you are repaying a student loan, your real take-home is lower than shown.

Other income. Every calculator assumes the freelance work is your only income. A salary, rental income or dividends from elsewhere all stack underneath and push you into higher bands sooner.

The Employment Allowance. Worth £10,500 against employer National Insurance, but a company whose only employee is a single director cannot claim it. Since that describes almost every contractor company, it is deliberately not applied. If you employ someone else, your position is better than shown.

Payments on account. The figures show what you owe for a year, not when you pay it. Your first Self Assessment bill often includes a payment on account for the following year, which can feel like being charged one and a half times.

Pension tax relief. The day rate calculator treats a pension contribution as money you need on top of your take-home. In reality it attracts relief, so the true cost is lower. That makes the resulting rate conservative rather than optimistic, which is the direction we would rather err in.

When rates change

Tax years start on 6 April. Rather than editing figures in place, each year is stored as its own set, so older calculations stay correct and any change is visible in the history. The dividend rise in April 2026 and the mileage increase in the same month are both recorded that way. If you spot a figure that has moved and we have not caught it, that is worth telling us about.

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