{"id":5912,"date":"2020-07-02T17:18:51","date_gmt":"2020-07-02T16:18:51","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=5912"},"modified":"2026-01-28T07:22:37","modified_gmt":"2026-01-28T07:22:37","slug":"freelance-tax-in-the-uk","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/freelance-tax-in-the-uk\/","title":{"rendered":"What tax do I pay as a freelance writer in the UK?"},"content":{"rendered":"\n

Want to know more about freelance tax in the UK<\/strong>? Well, read on!<\/p>\n\n\n\n

As a freelance writer, the tax you pay will depend on your employment status. If you\u2019re employed full-time but freelance as a side gig, you\u2019ll be taxed in addition to your PAYE taxes. <\/p>\n\n\n\n

An example of this would be if you work in marketing full-time and you\u2019re a novelist on the side. <\/p>\n\n\n\n

In contrast, if you\u2019re a full-time sole trader and you write freelance for multiple clients (although this is not always the case), you\u2019ll have to complete a tax return to pay tax on your income.<\/p>\n\n\n\n

How is freelance tax calculated in the UK?<\/strong><\/strong><\/h2>\n\n\n<\/div> \n\n
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The <\/span>income tax<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
Income<\/strong><\/td>\nTax rate<\/strong><\/td>\nTax band<\/strong><\/td>\n<\/tr>\n
Up to \u00a312,570<\/span><\/td>\n0%<\/span><\/td>\nPersonal allowance<\/span><\/td>\n<\/tr>\n
\u00a312,571 to \u00a350,270<\/span><\/td>\n20%<\/span><\/td>\nBasic rate<\/span><\/td>\n<\/tr>\n
\u00a350,271 to \u00a3125,140<\/span><\/td>\n40%<\/span><\/td>\nHigher rate<\/span><\/td>\n<\/tr>\n
over \u00a3125,141<\/span><\/td>\n45%<\/span><\/td>\nAdditional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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What if freelance writing is my side-gig?<\/h2>\n\n\n\n

The rules for freelance tax in the UK<\/strong> vary if you’re freelancing as a side gig. If you earn up to \u00a31,000 per year, it\u2019s tax-free under the Trading Allowance<\/a>. <\/p>\n\n\n\n

But if you earn more than \u00a31,000, you must register with HMRC and complete a tax return. So, make sure to track your freelance income and keep accurate records (invoices, receipts, etc.) to pay the correct freelance tax<\/strong>.<\/p>\n\n\n\n

If your earnings exceed \u00a312,570, you’ll also need to pay Class 4 National Insurance.<\/a><\/p>\n\n\n<\/div> \n\n

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National Insurance<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
NI class<\/strong><\/td>\nWho pays?<\/strong><\/td>\nHow much?<\/strong><\/td>\n<\/tr>\n
Class 1<\/span><\/td>\nEmployees earning over \u00a312,570<\/span><\/td>\n8% on earnings between \u00a3242 and \u00a3967 per week<\/span><\/p>\n

2% if you earn \u00a3967+ per week<\/span><\/td>\n<\/tr>\n

Class 1A\/1B<\/span><\/td>\nEmployers<\/span><\/td>\n15%<\/span><\/td>\n<\/tr>\n
Class 3<\/span><\/td>\nVoluntary contributions<\/span><\/td>\n\u00a317.75 per week<\/span><\/td>\n<\/tr>\n
Class 4<\/span><\/td>\nSelf-employed earning over \u00a312,570<\/span><\/td>\n6% on profits between \u00a312,570-\u00a350,270<\/span><\/p>\n

2% on profits over \u00a350,270<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n

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What if I\u2019m a self-employed freelance writer?<\/h2>\n\n\n\n

As a sole trader, you\u2019re taxed on your overall profits. Any income above the Personal Allowance is taxed at 20% up to \u00a350,270, then at 40% beyond that.<\/p>\n\n\n\n

You may also consider setting up a limited company, which separates your writing business from you personally. If you choose this route, you\u2019ll need to:<\/p>\n\n\n\n