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Want to know more about freelance tax in the UK? Well, read on!
As a freelance writer, the tax you pay will depend on your employment status. If you’re employed full-time but freelance as a side gig, you’ll be taxed in addition to your PAYE taxes.
An example of this would be if you work in marketing full-time and you’re a novelist on the side.
In contrast, if you’re a full-time sole trader and you write freelance for multiple clients (although this is not always the case), you’ll have to complete a tax return to pay tax on your income.
The income tax rates in the 2025/26 tax year 👇
| Income | Tax rate | Tax band |
| Up to £12,570 | 0% | Personal allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,271 to £125,140 | 40% | Higher rate |
| over £125,141 | 45% | Additional rate |
The rules for freelance tax in the UK vary if you’re freelancing as a side gig. If you earn up to £1,000 per year, it’s tax-free under the Trading Allowance.
But if you earn more than £1,000, 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.
If your earnings exceed £12,570, you’ll also need to pay Class 4 National Insurance.
National Insurance rates in the 2025/26 tax year 👇
| NI class | Who pays? | How much? |
| Class 1 | Employees earning over £12,570 | 8% on earnings between £242 and £967 per week
2% if you earn £967+ per week |
| Class 1A/1B | Employers | 15% |
| Class 3 | Voluntary contributions | £17.75 per week |
| Class 4 | Self-employed earning over £12,570 | 6% on profits between £12,570-£50,270
2% on profits over £50,270 |
As a sole trader, you’re taxed on your overall profits. Any income above the Personal Allowance is taxed at 20% up to £50,270, then at 40% beyond that.
You may also consider setting up a limited company, which separates your writing business from you personally. If you choose this route, you’ll need to:
Yes! Whether you’re a full-time freelance writer or it’s just a side hustle, you can claim business expenses to reduce your freelance tax in the UK.
Here are some examples of deductible expenses:
For a more detailed list, head over to HMRC.
Feeling overwhelmed by freelance tax in the UK? Don’t worry, we can help you file your tax return smoothly. 🙋 Check out our tax return service here.
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Or see our Guides, Calculators or Taxopedia
