Your target income
£
%
£
Minimum day rate to hit your target
£0
per billable day
0Billable days/yr
£0Gross revenue needed
£0Weekly rate (5 days)
£0Hourly (8hr day)
For guidance only — not financial, tax or legal advice. Verify with a qualified professional.
About freelance day rates in the UK
How many billable days does a freelancer actually work?
A standard working year is 260 days (52 weeks × 5 days). Subtract bank holidays (8), holidays, sick days, and time spent on non-billable admin. Most freelancers bill 200–230 days per year. This calculator uses your inputs to be specific to your situation.
Should I operate as a sole trader or limited company?
For earnings under ~£35,000/year, sole trader is usually simpler. Above that, a limited company typically saves tax — you pay yourself a small salary (around the NIC threshold) and take the rest as dividends, which are taxed at lower rates. IR35 rules apply if you work through a client's control; get advice if unsure.
What is IR35 and does it affect my rate?
IR35 (off-payroll working rules) determines whether HMRC considers you an employee for tax purposes. If caught inside IR35, your client deducts income tax and NI before paying you — effectively making you an employee without the benefits. Most public sector and large private sector clients assess IR35 status. If you are inside IR35, you need a significantly higher day rate to achieve the same take-home.
How much should I add for non-billable time?
As a rule of thumb, freelancers spend 20–30% of working time on non-billable activities: admin, business development, invoicing, CPD. This calculator accounts for this via the billable days input — be honest with yourself about how many days you actually bill, not how many you work.
Should my day rate include VAT?
If you are VAT registered (mandatory above £90,000 turnover in 2026/27), you charge VAT on top of your day rate. Your day rate itself should not include VAT — quote rates ex-VAT. The VAT you collect belongs to HMRC, not you.