# Freelancer Tax FAQ & How Nett Works | Nett > Answers about Income Tax, National Insurance, deductible expenses, how much you can spend, and how Nett tracks it all automatically for UK freelancers. _Source: https://getnett.app/en-gb/faq_ Invoicing doesn’t mean it’s yours # What every freelancer needs to know before spending You invoice a client, but part of it goes to taxes. Freelancer tax questions, answered clearly. Search these questions Invoices · Illustrative example **£3,200** Your Nett **£2,180** Reserve **£420** Expenses **£600** [Try with your numbers →](/en-gb/calculator) [](/en-gb/support) Freelancer taxes About Nett 1. [ **How much you’ll pay** Income tax, National Insurance and the real tax burden of freelancing. ](#taxes) 2. [ **What you can deduct** Which expenses actually count and which don’t. ](#expenses) 3. [ **How much you can spend** The core idea behind Nett: what’s actually yours. ](#nett) 4. [ **Deadlines & decisions** Tax calendar and whether freelancing is worth it. ](#deadlines) ## How much you’ll pay Income tax, National Insurance and the real tax burden of freelancing. [Calculate what’s left →](/en-gb/calculator) ### How much tax does a freelancer pay in the UK? Most UK freelancers pay between 25% and 40% of their profit in taxes, combining Income Tax and National Insurance. On £45,000 profit, you'd pay roughly £6,486 Income Tax and £3,340 in NICs, keeping about £35,174. The exact amount depends on your expenses and whether you're VAT registered. ### What is the personal allowance for self-employed? The personal allowance is £12,570 for 2025/26. You pay no Income Tax on the first £12,570 of profit. Above that, you pay 20% up to £50,270, then 40% on income above that. The allowance reduces by £1 for every £2 earned above £100,000. ### How much National Insurance do freelancers pay? Class 2 NICs were abolished from April 2024. You now only pay Class 4 NICs: 6% on profits between £12,570 and £50,270, then 2% above that. These are paid through Self Assessment alongside your Income Tax. If your profits are above £12,570, you automatically receive National Insurance credits for the State Pension, with no separate payment needed. ## What you can deduct Which expenses actually count and which don’t. [Read blog guides →](/en-gb/blog) ### What expenses can freelancers deduct? Business expenses directly related to your work: office rent or home office costs (simplified expenses), equipment, software subscriptions, phone and internet (business portion), travel for work, professional insurance, accountancy fees, and marketing costs. Keep receipts for everything. ## How much you can spend The core idea behind Nett: what’s actually yours. [Try the calculator →](/en-gb/calculator) ### How much money can I actually spend as a freelancer? That's the question Nett answers. If you earn £4,000 in a month, somewhere between £2,600 and £3,000 is actually yours after setting aside for tax. The exact number depends on your total annual income, expenses, and NIC obligations. Nett calculates this automatically every time you log income. ### What is "Your Nett"? Your Nett is the money left after reserving what you'll owe in taxes. Nett takes your income, subtracts your estimated tax reserve and expenses, and shows you what's genuinely yours. The formula is simple: Income - Expenses - Tax reserve = Your Nett. Instead of guessing or doing quarterly spreadsheets, you see it update in real time. ### How is Your Nett different from a tax calculator? A tax calculator gives you a one-off number. Your Nett is a living figure that changes with every invoice you receive and every expense you log. It's the difference between calculating tax once a year and always knowing what's actually yours. ### How does Nett calculate what I can spend? You log your income and Nett applies your tax configuration (Income Tax, NICs, VAT if applicable) to calculate the reserve you need. What's left after that reserve and your expenses is Your Nett. It adapts to your country, your tax regime, and updates automatically. ## Deadlines & decisions Tax calendar and whether freelancing is worth it. [See related articles →](/en-gb/blog) ### When do I need to pay my tax bill? Self Assessment deadline: 31 January following the tax year (so 31 Jan 2027 for 2025/26). If your bill is over £1,000, HMRC requires payments on account: two advance payments (31 Jan and 31 Jul) based on last year's bill. This catches many freelancers off guard. ### Do I need to register for VAT? Only if your taxable turnover exceeds £90,000 in a 12-month rolling period. Below that, VAT registration is optional. Being VAT registered means charging VAT on invoices and filing quarterly returns, but you can reclaim VAT on business purchases. 1. [ **Getting started** What is Nett? · 5 articles ](/en-gb/support#getting-started) 2. [ **Home** What does the Home screen show? · 7 articles ](/en-gb/support#home) 3. [ **Transactions and documents** How do I add a transaction? · 18 articles ](/en-gb/support#transactions-and-documents) 4. [ **Taxes and tax periods** How does Nett calculate my tax reserve? · 8 articles ](/en-gb/support#taxes-and-tax-periods) 5. [ **Tax options available by country** Which tax options does Nett provide for the United Kingdom? · 2 articles ](/en-gb/support#tax-options-available-by-country) 6. [ **Statistics** What does the Statistics screen show? · 8 articles ](/en-gb/support#statistics) 7. [ **App preferences** Where do I change Nett’s preferences? · 9 articles ](/en-gb/support#app-preferences) 8. [ **Partners, categories and suggestions** What are partners for? · 4 articles ](/en-gb/support#partners-categories-and-suggestions) 9. [ **Privacy, iCloud and offline use** Where is my data stored? · 10 articles ](/en-gb/support#privacy-icloud-and-offline-use) 10. [ **Premium and exports** What do Nett Free and Nett Premium include? · 4 articles ](/en-gb/support#premium-and-exports) 11. [ **Help and feedback** How do I report a problem? · 4 articles ](/en-gb/support#help-and-feedback) [Search the help center →](/en-gb/support)