UK tax bands for freelancers (2026/27)
- Personal allowance: £0 – £12,570 — 0% tax.
- Basic rate: £12,571 – £50,270 — 20%.
- Higher rate: £50,271 – £125,140 — 40%.
- Additional rate: over £125,140 — 45%.
- Class 4 NI: 6% on £12,570–£50,270, then 2% above.
IR35 in plain English
IR35 is HMRC's way of catching people who work through a limited company but actually behave like employees. Inside IR35: you're taxed roughly like an employee. Outside IR35: you keep the tax efficiency of a company. For agency contractors, the end-client usually decides your IR35 status. Read more in our IR35 guide.
When do freelancers pay their tax bill?
Self Assessment is filed online by 31 January following the tax year. You'll typically pay your balancing payment then, plus a "payment on account" (an advance towards next year's bill). A second payment on account follows by 31 July. Setting aside ~25–30% of each invoice into a tax pot avoids nasty surprises.
This UK income tax calculator for freelancers gives estimates only and ignores items like student loan repayments, dividends, pension contributions and the High Income Child Benefit Charge.