Fiverr Tax Guide 2026/27
By Omair SaoLast reviewed — rates for the 2026/27 tax year. See how we check our figures.
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?
If you earn through Fiverr as a self-employed freelancer, 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% + 6%
Income Tax + Class 4 NI on profit between £12,570 and £50,270
Higher rate taxpayer
40% + 2%
Income Tax + Class 4 NI on profit between £50,270 and £125,140
Trading allowance
£1,000
Tax-free — no Self Assessment below this
A Typical Year on Fiverr: Worked Example
Assumes a part-time designer working around 8 hours a week, with Fiverr's commission, software subscriptions and a working-from-home share counted against gross order values. The figures below assume you also have a £28,000 PAYE job, so your Personal Allowance is already used and every pound of profit is taxed. They are produced with the same 2026/27 tax functions as our side hustle tax calculator.
If Fiverr were your only income, the £12,570 Personal Allowance would cover the whole profit and no income tax would be due at this level.
What Fiverr Reports to HMRC
Freelance gigs are personal services, so there is no minimum at which Fiverr sellers drop off the report; one completed order in the calendar year is enough. Fiverr is a non-UK company, which affects the route: UK-based platforms report to HMRC directly, while overseas platforms in partner countries report to their own tax authority, which exchanges the information with HMRC. Fiverr may therefore ask you to confirm tax residence and an identification number in your account settings, and data about your earnings can reach HMRC by 31 January for the previous calendar year with a copy to you. Because Fiverr prices in US dollars, both the report and your records need converting to sterling, and an overseas platform is not a place where income is invisible.
Getting Started: Staying Compliant from Day One
- 1
Register as self-employed once total freelance income passes the £1,000 trading allowance; registration is due by 5 October after the tax year ends and the return online by 31 January.
- 2
Download or request Fiverr's statement of earnings for each calendar year and keep it with a monthly export of completed orders.
- 3
Record each payout in sterling at the rate on the day it landed or HMRC's published monthly rates, and stick to one method.
- 4
Keep invoices for software, stock assets and font licences bought for client work; a share of home costs is also claimable, for example through HMRC's working-from-home flat rate.
Common Mistakes Fiverr Freelancers Make
- Reporting only bank withdrawals instead of the order values Fiverr records, so your return never matches the platform figure.
- Not budgeting for payments on account: once your bill is large enough, the first January payment includes an advance towards the following year.
- Forgetting the trading allowance is shared: Fiverr, Upwork and direct clients get one £1,000 allowance between them.
Allowable Expense Deductions for Fiverr
These expenses reduce your taxable profit. Keep receipts for all claims.
Earning and Tax Tips for Fiverr Freelancers
- 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.
Official Sources
The rules on this page come from the following official pages and were checked on 25 September 2026. Read how we check our figures.
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.
Side Hustle Tax Guide 2026
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Making Tax Digital for Side Hustles
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