UK Freelance Salary Calculator
See what a US-dollar contract rate leaves a UK sole trader after 2026/27 income tax and Class 4 National Insurance, and the PAYE salary it matches.
Updated · By Niraj Kumar · 3 sources
https://checkpre.com/finance/freelance-salary-calculator-uk
Your rate
Leave out holidays and gaps between clients.
Equipment, software, coworking, accountant, bank and payment fees.
Tax setup
Sole trader. Income tax at 20/40/45% after the personal allowance, plus Class 4 National Insurance at 6% and 2%.
- Equivalent PAYE salary
- £80,637
- The salary an employee needs to take home the same; £38.77 an hour over 2,080 paid hours
- Purchasing power
- $81,717
- What your take-home buys, priced in the US (World Bank PPP 0.7 GBP per $)
- Tax and social contributions
- 26% of revenue
- 40% of each extra unit you bill
- Revenue
- £83,512
- $110,400 at 1 USD = £0.76 (snapshot, 2026-09-24)
- Take-home69%
- Social contributions3%
- Income tax23%
- Business costs5%
Where the money goes, a year
- Revenue
- £83,512
- Business costs
- −£4,176
- Class 4 National Insurance
- −£2,843
- Income tax
- −£19,167
- Take-home
- £57,327
- Rates for England, Wales and Northern Ireland; Scotland has its own income tax bands.
- Class 2 National Insurance is voluntary since April 2024 and is left out.
- Many contractors trade through a limited company instead, paying corporation tax and dividends; that is not modelled.
The same $60/hour in 15 countriesShowHide
| Country | Take-home, local | In USD | PPP $ | Tax + social |
|---|---|---|---|---|
| IndiaPresumptive, section 44ADA | ₹8,726,820 | $90,942 | $439,884 | 13% |
| Philippines8% flat rate | ₱5,406,358 | $86,157 | $263,294 | 17% |
| BrazilPJ on Simples Nacional (Anexo III) | R$471,790 | $91,065 | $182,759 | 13% |
| RomaniaPFA (real system) | RON 390,165 | $84,030 | $178,931 | 19% |
| MexicoRESICO (régimen simplificado de confianza) | MX$1,805,391 | $102,672 | $159,645 | 2.0% |
| PolandRyczałt 12% (IT services) | PLN 315,857 | $81,928 | $153,094 | 21% |
| ColombiaTrabajador independiente | COP 243,641,332 | $74,636 | $146,279 | 27% |
| SpainAutónomo (estimación directa) | €57,906 | $65,822 | $95,263 | 35% |
| PortugalTrabalhador independente (simplified regime) | €53,672 | $61,009 | $93,389 | 40% |
| United KingdomSole trader | £57,327 | $75,784 | $81,717 | 26% |
| United States1099 sole proprietor | $81,028 | $81,028 | $81,028 | 22% |
| NetherlandsZZP'er (eenmanszaak) | €61,777 | $70,222 | $80,507 | 31% |
| CanadaSole proprietor (Ontario) | CA$101,260 | $71,728 | $80,335 | 30% |
| GermanyFreiberufler (voluntary GKV) | €55,535 | $63,126 | $77,251 | 38% |
| AustraliaSole trader | A$109,979 | $77,278 | $75,092 | 25% |
How is freelance income taxed in the UK?
Revenue = Rate × Hours × Weeks × FX, Take-home = Revenue − Expenses − Social − Tax, Salary* : Net_employee(Salary*) = Take-home, PPP $ = Take-home ÷ PPPThis page uses the same method as the Freelance Hourly Rate to Salary Calculator, which explains each term and assumption in full.
Worked example
A freelancer in the UK bills a US client $60 an hour for 40 hours a week, 46 weeks a year, with 5% in business costs, as a Sole trader.
- 1Revenue: $60 × 40 × 46 = $110,400, or £83,512 at £0.76 per dollar (ECB, 2026-09-24)
- 2Social contributions: £2,843; income tax: £19,167; together 26% of revenue
- 3Take-home after £4,176 of costs: £57,327 a year, £4,777 a month ($75,784)
- 4An employee in the UK would need to earn £80,637 (PAYE salary) to take home the same
- 5At purchasing power parity that take-home buys what $81,717 would in the US
$60 an hour is worth about the same as a £80,637 PAYE salary in the UK.
Frequently asked questions
How much tax does a freelancer pay in the UK in 2026/27?
On $60 an hour (£83,512 a year), about 26% of revenue goes to social contributions and income tax as a Sole trader, leaving £57,327 after 5% of costs. Income tax at 20/40/45% after the personal allowance, plus Class 4 National Insurance at 6% and 2%.
What National Insurance does a UK freelancer pay in 2026/27?
Class 4 at 6% on profits between £12,570 and £50,270 and 2% above. Class 2 has been voluntary since April 2024; paying it can protect your state pension record in a year of low profits.
Why does my marginal rate jump above £100,000?
Because the £12,570 personal allowance is withdrawn at £1 for every £2 of income above £100,000, so between £100,000 and £125,140 each extra pound costs 40% tax plus 20% from the lost allowance, 60% in all before National Insurance. Pension contributions bring income back below the line.
Does IR35 apply to overseas clients?
IR35 is aimed at people working through their own limited company for UK clients. A sole trader paid by a US company is taxed as self-employed on their profit; employment status can still be questioned, but the off-payroll rules that make UK clients decide status do not reach a client with no UK presence.
Do clients abroad withhold tax from a freelancer in the UK?
Foreign clients pay UK sole traders gross. Services to business clients abroad are outside the scope of UK VAT, so they do not count towards the £90,000 registration threshold.
Sources
Related calculators
- Freelance Hourly Rate to Salary CalculatorTurn a US-dollar hourly rate into take-home pay, the equivalent salary and local purchasing power in 15 countries, with 2026 tax and social security rules.
- Netherlands ZZP Salary CalculatorTurn a US-dollar rate into a Dutch zzp'er's take-home pay after the 2026 zelfstandigenaftrek, MKB exemption, box 1 tax, credits and Zvw.
- Germany Freelance Salary CalculatorSee what a US-dollar rate leaves a German Freiberufler after 2026 income tax, solidarity surcharge and statutory health and care insurance.
- VAT CalculatorAdd VAT to a net price or take it out of a gross one, at UK, EU, Gulf or any other rate.