Free Tool for UK Trades

Self-EmployedRate Calculator

Work out what you need to charge to hit your target take-home pay. Includes tax, National Insurance, and expenses for 2025/26. Stop undercharging.

✓
Tax & NI included
✓
Expense tracking
✓
2025/26 tax rates

Hourly Rate Calculator

£

What you want in your pocket after tax.

Per year (52 - holidays)

Hours you can actually bill (not travel/admin).

£

Van, tools, insurance, materials, accountant, etc.

What You Need to Charge

Day Rate

£234

Hourly Rate

£29

✓ Within typical UK sparky rates (£200-£400/day).

Gross Income Required£54880
Less: Business Expenses-£5000
Taxable Profit£49880
Income Tax-£7462
National Insurance-£2418
Take Home£40000

Based on 235 working days (47 weeks × 5 days) and 1880 chargeable hours per year.

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Why You Need to Calculate Your Rate Properly

Most new self-employed tradespeople make the same mistake: they look at what employees earn and think "I'll charge a bit more than that." Then they wonder why they're skint.

When you're self-employed, you need to cover everything:

£Income Tax (20-40%)
£National Insurance (Class 2 + Class 4)
£Van costs, fuel, insurance
£Tools and equipment
£Public liability insurance
£Accountant fees
£Holiday pay (you're paying yourself)
£Sick pay (nobody else will)

The £40k Myth

Want to take home £40,000? You'll need to earn around £55,000 gross (before expenses). That's roughly £235/day or £30/hour. Most newbies don't realise this until their first tax bill arrives.

How to Calculate Your Hourly Rate

The formula is simple, but the numbers catch people out:

Step by step

  1. 1Start with your target take-home pay
  2. 2Add back income tax and National Insurance
  3. 3Add your annual business expenses
  4. 4Divide by your chargeable hours

Don't Forget Non-Chargeable Time

You won't bill for every hour you work. Be realistic about how many hours you can actually charge for:

  • •Travel time – Getting to and from jobs
  • •Quoting – Site visits that don't convert
  • •Admin – Invoicing, emails, ordering materials
  • •Callbacks – Fixing snags (unless you charge for them)

Most tradespeople can only charge for 6-7 hours of an 8-hour day. Factor this into your calculations.

Average UK Trade Rates (2025)

These are typical day rates for experienced tradespeople outside London. Rates vary significantly by location and specialisation.

TradeLowAverageHigh
Electrician (Sparky)£200£280£400+
Plumber£180£250£350+
Builder£180£240£320+
Carpenter (Chippy)£160£220£300+

London rates are typically 20-40% higher. Specialist work commands premium rates.

Self-Employment Tax Explained (2025/26)

Income Tax

  • £0 - £12,570:0%
  • £12,571 - £50,270:20%
  • £50,271+:40%

National Insurance

  • Class 2:£3.45/week
  • Class 4 (6%):£12,570-£50,270
  • Class 4 (2%):Above £50,270

Good News: NI Cut in 2024

Class 4 NI was cut from 9% to 6% in April 2024. This saves a typical self-employed tradesperson earning £40k around £1,200 per year.

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