How do I calculate my annual income from a day rate?

Multiply your day rate by the number of working days per year. For example, at £250/day working 5 days a week with 4 weeks holiday and 5 sick days, that is (48 weeks x 5 days) - 5 = 235 working days, giving a gross annual income of £58,750. You then need to deduct income tax, Class 2 NI and Class 4 NI to find your take-home pay.

What are Class 2 and Class 4 National Insurance for the self-employed?

Self-employed people in the UK pay two types of NI. Class 2 NI is a flat rate of £3.45 per week (2025/26) if your profits exceed £12,570. Class 4 NI is profit-based: 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Both are paid through your Self Assessment tax return.

What is a good day rate for a tradesperson in the UK?

Day rates vary significantly by trade and region. As a general guide in 2025/26: a general labourer might charge £120-£180/day, a carpenter £200-£300/day, an electrician £250-£350/day, and a specialist such as a gas engineer £280-£400/day. London and the South East rates are typically 15-25% higher than the national average.

Do I need to register for VAT as a self-employed tradesperson?

You must register for VAT if your taxable turnover exceeds £90,000 in any 12-month rolling period (2025/26 threshold). You can also voluntarily register below this threshold. VAT-registered tradespeople charge 20% VAT on their invoices but can reclaim VAT on business expenses such as materials, tools and van costs.

How many working days are there in a year for a self-employed tradesperson?

There are 260 weekdays in a standard year (52 weeks x 5 days). Most self-employed tradespeople work around 230-240 days after accounting for 4-5 weeks holiday and a few sick days. Some choose to work 6 days a week, which increases to around 280 working days per year before deducting holiday.

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Day Rate Calculator — Annual Income & Tax for Self-Employed Tradespeople

Convert your day rate to annual income and see estimated tax, National Insurance (Class 2 + Class 4) and take-home pay using 2025/26 UK rates.

Day Rate

Your charge-out rate per day before tax

Working Days Per Week

How many days you typically work each week

Weeks Holiday Per Year

Unpaid holiday weeks (most take 4-5 weeks)

Estimated Sick Days

Days you expect to be off sick (unpaid)

How We Calculate This

This calculator converts a daily rate into annual gross income, then applies 2025/26 UK self-employment tax rates to estimate your take-home pay.

The formula

Gross Annual Income = Day Rate x Working Days Per Year

Working days per year = (52 - weeks holiday) x days per week - sick days

2025/26 UK tax rates applied

Personal allowance: £12,570 (tapers above £100,000)
Basic rate (20%): £12,571 to £50,270
Higher rate (40%): £50,271 to £125,140
Additional rate (45%): Over £125,140
Class 2 NI: £3.45/week if profits exceed £12,570
Class 4 NI: 6% on £12,570-£50,270; 2% above £50,270

Important notes

This is an estimate only. Your actual tax bill may differ based on allowable expenses, capital allowances, pension contributions and other reliefs. Always consult an accountant for your final Self Assessment tax return.

Frequently Asked Questions

Last updated: March 2026

All calculations are estimates. Verify with your supplier.