FreelanceToolkit UK
Home Tools Freelancer Business Planner

Build a freelance business plan from the ground up

Enter the personal income you want to take home. The planner works backwards from there to tell you the revenue target, the day rate, the hourly rate, the billable days you need and the tax reserve you should hold back — all in one view, with scenario sliders for utilisation.

Most freelancers price like employees — picking a day rate from the market and hoping it covers the tax bill. This planner inverts that: it starts from what you want to earn, factors in the days you can't bill, and gives you the number you have to charge.

The planner

How to use the result

  1. Compare your required day rate against the market. If it's below the going rate, raise your target income or your pension. If it's well above, either accept a lower income, raise utilisation, or scale (team / products / packages).
  2. Hold back the tax reserve on every invoice. A separate savings pot (ideally a different bank) prevents the January SA shock. See the emergency fund calculator for a related cash buffer.
  3. Review every quarter. Utilisation drifts, expenses creep. Rerun the planner each quarter end — small adjustments beat January panic.

What the inputs mean

Target personal income
What you want to actually bank after tax, NI and pension. Not revenue.
Business expenses
Software subscriptions, insurance, phone, equipment amortisation, accountant, home office. See the allowable expenses guide.
Pension contribution
Treated as pre-tax here. Important: freelancers typically under-contribute vs equivalent employees.
Billable utilisation
Of the hours you have available, how many actually produce an invoice. 60-80% is realistic for established freelancers. 90%+ is unsustainable.
Tax reserve %
Sole trader at £40-60k income: ~28%. £60-100k: ~35%. Over £100k: ~42%. Limited company director varies — use the take-home calculator instead.

Related calculators