How UK freelancer tax works (2026/27 guide)

Everything a self-employed UK freelancer needs to know about tax, NI and deadlines.

Step 1 — Register as self-employed

You must tell HMRC you're self-employed by 5 October following the tax year you started trading. Registration takes a few minutes online and gives you a Unique Taxpayer Reference (UTR) — you'll need this for every Self Assessment return.

Step 2 — Track income and expenses

Your "profit" is income minus allowable business expenses. Allowable expenses include software, equipment, accountancy, business insurance, mileage, and a fair share of home-office costs. Keep digital records — Making Tax Digital is rolling out across self-employed taxpayers.

Step 3 — Know your tax bands (2026/27)

• £0–£12,570: personal allowance, 0%.
• £12,571–£50,270: basic rate, 20%.
• £50,271–£125,140: higher rate, 40%.
• Over £125,140: additional rate, 45%.

Step 4 — National Insurance

Self-employed Class 4 NI is 6% on profits between £12,570 and £50,270, then 2% above. Class 2 NI is now collected through Self Assessment but voluntary contributions can protect your State Pension record.

Step 5 — File and pay on time

Self Assessment is filed online by 31 January after the tax year end. You'll typically pay your balancing payment plus the first payment on account that day, with a second payment on account by 31 July. Late filing is £100 minimum — set a calendar reminder for early January.

Tools to make it easier

• Take-home pay calculator — see your net income.
• Tax estimator — quick band breakdown.
• Hourly rate calculator — set the right price.
• Invoice generator — create PDFs in seconds.

Estimates and rates as published by HMRC for 2026/27. Always verify with HMRC for your situation.