Freelance RateSetting a freelance rate in the United Kingdom
A checklist of the things that change a freelancer's rate in the United Kingdom, with a calculator that starts with example figures.
UK freelancers are often sole traders or run a small limited company. Either way, tax is paid after the end of the tax year through Self Assessment or the company route, so the money has to be put aside during the year.
What to include in your rate
- Self Assessment: see the UK Self Assessment basics page of this family, based on GOV.UK, for the registration and payment dates it states.
- Tax percentage: use one figure for the share of profit that goes to income tax and national insurance together, then check with HMRC guidance or an accountant.
- Pension and sick pay: a self-employed person has no employer pension or sick pay; use the savings box for retirement and keep a buffer for weeks you cannot work.
- Bank holidays and leave: count the bank holidays you do not work, plus your own leave, as weeks off.
- VAT: registration depends on turnover and the rules change, so check GOV.UK before adding VAT to a quote.
Try it with example figures
The form below starts with example numbers in british pound. They are made up: replace each one with your own.
A worked example
| Take-home wanted | £40,000 |
| Business costs | £4,000 |
| Profit needed before tax and savings (25% + 8%) | £59,701 |
| Income to bill in the year | £63,701 |
| Billable hours (45 weeks, 38 hours, 60% billed) | 1,026 |
| Hourly floor | £62 |
| Day rate floor | £472 |
That is a floor of £62 an hour. With 3 more weeks off the floor would be £67.
Common questions
Which weeks off should a freelancer in the United Kingdom count?
Count the public holidays in the place where you live, your own leave and a few sick days. This example uses 7 weeks; use your own number and be cautious, because most freelancers take more time off than they plan.
Where do I check the tax rules?
Ask GOV.UK and HM Revenue and Customs, or a qualified accountant in the United Kingdom. This site does not state rates because they change; type your own percentage into the form.
Keep going
Example figures on this site are made up to show the working. They are not market rates or averages. Tax, social-insurance, sales-tax and holiday rules differ by country and change, so this site does not state them: ask the tax authority of your country or an accountant. Checked 14 November 2026.