Fiverr Tax Guide 2026/27
Last updated: March 2026 — Rates for the 2026/27 tax year
Fiverr is a global freelance marketplace where UK sellers offer services (called 'gigs') starting from £5. Popular categories include graphic design, writing, video editing, voiceover, programming, and virtual assistance. Sellers set their own prices and work entirely remotely.
How Much Tax Will You Pay on Fiverr Income?
As a self-employed Fiverr worker you pay Income Tax and Class 4 National Insurance on your profits — not your gross earnings. The £1,000 trading allowance means the first £1,000 of income is tax-free. Above that, you deduct either the allowance or your actual expenses, whichever is higher, to arrive at your taxable profit. Use our side hustle tax calculator to get an instant estimate for 2026/27.
Basic rate taxpayer
20% + 9%
Income Tax + Class 4 NI on profit above £12,570
Higher rate taxpayer
40% + 9%
On profit between £50,270 and £125,140
Trading allowance
£1,000
Tax-free — no Self Assessment below this
Allowable Expense Deductions for Fiverr
These expenses reduce your taxable profit. Keep receipts for all claims.
Tax Tips for Fiverr Workers
- Start with competitive pricing to build reviews, then increase your rates once you have a strong profile with 5-star ratings.
- Fiverr's 20% fee is steep — factor it into your pricing so you are not undercharging for your time.
- Create gig packages at different price points (basic, standard, premium) to upsell clients to higher-value orders.
- Respond to enquiries quickly — Fiverr's algorithm rewards fast response times with better search placement.
Frequently Asked Questions
Am I self-employed if I sell on Fiverr?▾
Yes. Fiverr sellers are self-employed freelancers. You must register with HMRC as self-employed if your trading income exceeds £1,000 per year, file an annual Self Assessment tax return, and pay income tax and National Insurance on your profits.
How does Fiverr handle currency conversion?▾
Fiverr operates primarily in US dollars but you can withdraw in GBP. There is a currency conversion fee. For UK tax purposes, you should convert your earnings to GBP using the exchange rate at the time of each transaction or use HMRC's annual average exchange rate.
Can I claim the Fiverr 20% fee as an expense?▾
Yes. Fiverr's 20% commission is an allowable business expense that reduces your taxable profit. So if you receive $100 for a gig, Fiverr takes $20, and you report $80 as your gross income (or alternatively report $100 and deduct the $20 fee as an expense). Both methods produce the same taxable profit.
Related Tools & Guides
Benefits Calculator
Low Fiverr earnings? Check Universal Credit and other benefit entitlements.
Take-Home Pay Calculator
Also have a PAYE job? See your combined income after all deductions.
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