Most freelancers set a day rate by looking at what peers charge, then pitch slightly lower to win work. The problem: that number doesn’t account for Class 4 National Insurance, which stacks on top of Income Tax and applies to every pound of profit above £12,570.
ChargeWhat works backwards — enter your target take-home and it calculates the minimum rate you actually need. Verified against HMRC 2026/27 rates, covers England, Wales, Northern Ireland and Scotland.
ChargeWhat — UK
Freelance rate calculator · 2026/27
Rates verified against HMRC 2026/27 published rates. England/Wales/NI: Personal Allowance £12,570; Basic 20% to £50,270; Higher 40% to £125,140; Additional 45% above. Thresholds frozen to April 2031. Scotland 2026/27: Starter 19% to £16,537; Basic 20% to £29,526; Intermediate 21% to £43,662; Higher 42% to £75,000; Advanced 45% to £125,140; Top 48% above. Class 4 NI: 6% on profits £12,570–£50,270, 2% above. Class 2 NI abolished April 2024. Pension contributions reduce adjusted net income for Income Tax. Personal Allowance tapered above £100,000. Student loan thresholds 2026/27: Plan 1 £26,900; Plan 2 £29,385; Plan 4 £33,795; Plan 5 £25,000; Postgraduate £21,000. Not tax advice — consult HMRC or a qualified accountant for your specific circumstances.
Why do I need a specific UK freelance rate calculator?
UK freelancers pay Income Tax and Class 4 National Insurance on their profits, not a flat self-employment tax rate. The tax bands also differ between England, Wales, Northern Ireland and Scotland. A generic calculator that ignores these will give you a meaningfully wrong number.
What is Class 4 National Insurance?
Class 4 NI is the National Insurance contribution paid by self-employed sole traders on their annual profits. For 2026/27 it’s 6% on profits between £12,570 and £50,270, and 2% above that. It’s paid through Self Assessment alongside Income Tax.
Does this calculator work for Scottish freelancers?
Yes. Scotland uses a six-band income tax system with different thresholds to the rest of the UK. Select Scotland in the dropdown and the calculator applies the correct 2026/27 rates: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%).
Why does my day rate look higher than I expected?
Because most freelancers underestimate how many costs come out of gross revenue before take-home pay. Income Tax, Class 4 NI, business expenses, pension contributions, and time off all reduce what actually lands in your bank account.
What is the VAT registration threshold?
If your annual turnover exceeds £90,000, you must register for VAT with HMRC. The calculator flags this if your projected gross revenue approaches that level — it’s worth factoring into your pricing strategy before you hit it.
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