Is your profit margin actually good, or does it just feel good? These are the real net profit margins for 13 UK industries, taken from the Office for National Statistics. Compare your own margin against the median and the typical range for your sector, and see exactly where you stand.
UK profit margin benchmarks by industry
The table below shows 2019 median net profit margins by industry, from the ONS Annual Business Survey. Net margin means profit after all costs, as a share of revenue. The P25-P75 column shows the range where the middle half of businesses sit, and the final column shows how many businesses the data covers.
| Industry (SIC) | Median net margin | Typical range (P25-P75) | Businesses |
|---|---|---|---|
| Legal and accounting | 36.3% | 20.5% – 46.5% | 74,641 |
| Information services | 27.1% | 3.9% – 48.5% | 9,084 |
| Creative, arts and entertainment | 23.7% | 8.3% – 46.2% | 29,814 |
| Other personal services | 19.8% | 3.2% – 49.4% | 71,457 |
| Other professional, scientific and technical | 18.7% | 7.1% – 40.4% | 81,086 |
| Construction of buildings | 17.3% | 1.9% – 39.7% | 101,239 |
| Architecture and engineering | 13.8% | 3.6% – 32.5% | 95,927 |
| Head offices and management consultancy | 12.6% | -0.9% – 48.6% | 181,342 |
| Specialised construction | 12.5% | 4.7% – 27.3% | 211,946 |
| Advertising and market research | 10.1% | 3.1% – 26.0% | 22,599 |
| Computer programming and consultancy | 9.9% | 2.8% – 26.4% | 165,965 |
| Food and beverage services | 8.3% | -1.8% – 19.7% | 136,406 |
| Retail (excluding motor vehicles) | 1.4% | -0.6% – 6.2% | 212,392 |
Data: ONS experimental statistics, firm-level profitability estimates from the Annual Business Survey 1997 to 2019, Great Britain, sales-weighted medians. Data last reviewed: October 2026.
Tip: The spread matters more than the median. A consultant at 12% net margin is below the typical range for management consultancy (-0.9% to 48.6% is wide, but the middle half is the honest comparison). A programmer at 20% is above the industry median of 9.9% and inside the typical 2.8% to 26.4% band, which is a genuinely healthy position.
How the data was collected
These figures come from the Office for National Statistics experimental statistics on firm-level profitability, built from the Annual Business Survey (formerly the Annual Business Inquiry) covering 1997 to 2019. This is the latest detailed industry-level release the ONS has published.
A few methodology points, stated plainly so you can judge the numbers:
- The figures are sales-weighted medians: half of businesses (by sales) earn more than the median, half earn less. Medians are used instead of means because a few very profitable giants would otherwise drag the average up.
- Coverage is Great Britain (England, Scotland and Wales), not Northern Ireland.
- Industries follow the Standard Industrial Classification (SIC), at 2-digit division level.
- The ONS labels these experimental statistics: they meet quality standards but are still under development, so treat them as the best available official benchmark, not gospel.
How to read these numbers as a freelancer
Most benchmark tables online show a single number per industry. That is misleading, because margins vary enormously inside every industry. Legal and accounting has a median of 36.3%, but a quarter of firms earn less than 20.5% and a quarter earn more than 46.5%. Your position within the spread tells you far more than the median alone.
Here is how to use the table:
- Calculate your own net margin. Net margin = (revenue minus all costs) divided by revenue, times 100. LancerBill’s profit margin calculator does this in seconds, including the difference between margin and markup.
- Find your closest industry. A freelance designer sits in “Creative, arts and entertainment”. A freelance developer sits in “Computer programming and consultancy”. A freelance marketing consultant sits in “Advertising and market research” or “Head offices and management consultancy”.
- Place yourself in the spread. Inside the P25-P75 band is normal. Below P25 means your pricing or costs need attention. Above P75 means you are doing better than three quarters of the industry.
Watch out: do not compare your net margin to someone else’s gross margin. Gross margin excludes overheads like software, insurance and your own time. A “40% margin” bragged about online is often gross. The ONS figures above are net, so compare like with like. Our guide to profit margin vs markup explains the other common confusion.
Worked example: a freelance designer checks her margin
Priya is a freelance brand designer in Manchester. Last tax year her numbers were:
- Revenue: £60,000
- Costs: software £1,800, coworking £3,600, insurance £400, accountant £900, hardware £1,500, training £800, other £3,000. Total: £12,000
- Profit: £60,000 – £12,000 = £48,000
- Net margin: £48,000 / £60,000 x 100 = 80%
That looks astonishing against the “Creative, arts and entertainment” median of 23.7%. But there is a catch: Priya has not included the cost of her own labour. ONS business figures include staff costs, and for a fair comparison a freelancer should include a salary equivalent. If Priya values her time at £35,000 (a modest employed-designer salary), her true costs are £47,000, profit is £13,000, and her margin is £13,000 / £60,000 x 100 = 21.7%.
That puts her just below the industry median of 23.7% but comfortably inside the typical 8.3% to 46.2% band: a normal, healthy position. If she wants to push above the median, the lever is pricing, which is exactly what our guide to raising freelance rates covers.
Current context: ONS 2024 economy-wide figures
The detailed industry data ends in 2019, so here is the latest economy-wide context, with an important label attached. The ONS Profitability of UK companies bulletin reports, for 2024: manufacturing 11.7%, services 15.2% (Q2 2025: manufacturing 11.8%, services 15.2%).
These are net rates of return on capital employed, not profit margins. They measure profit against the capital invested, not against revenue, so they cannot be compared with the margin table above. They are included only to show the broad direction: UK company profitability has been roughly stable through 2024 and into 2025.
Cross-check: Xero’s published guidance ranges
Xero’s UK glossary publishes typical net margin ranges by sector: Software/SaaS 20% and above, professional services 15-30%, construction 5-10%, retail 2-5%, hospitality 3-9%.
Treat these as published guidance, not data: Xero publishes no methodology or sample behind them. They are useful as a sanity check, though, because they sit close to the ONS medians (professional services 15-30% against the ONS professional/scientific/technical section median of 17.2%, retail 2-5% against the ONS retail median of 1.4%). When two independent sources point the same way, the benchmark is more trustworthy.
Limitations of this data
Honest benchmarks state their limits. Here are this page’s:
- The detail ends in 2019. This is the latest detailed industry release from the ONS. Cost structures have shifted since (energy, interest rates, AI tooling), so use these as structural benchmarks, not current-year figures.
- No sole-trader split. The ABS covers employer businesses. Freelancers and sole traders are not separated out, so the figures reflect businesses with staff costs included.
- No per-trade granularity. “Computer programming and consultancy” covers one-person contractors and 500-person agencies alike. Your niche within it may differ.
- Economy-wide 2024 figures are a different metric. As noted above, rate of return on capital is not margin. Do not mix the two.
If this page earns its keep, the next step is a proper UK freelancer survey with screened sole-trader and limited-company samples. That is the honest gap no free source currently fills.
Key takeaways
- UK industry net margins range from 1.4% (retail) to 36.3% (legal and accounting), ONS 2019, sales-weighted medians.
- The typical range (P25-P75) matters more than the median: it shows where the middle half of businesses actually sit.
- Calculate your net margin including a salary equivalent for your own labour, or the comparison flatters you.
- Xero’s published guidance ranges sit close to the ONS medians, which increases confidence in both.
- The detailed data ends in 2019 and covers employer businesses, so treat these as structural benchmarks with stated limits.
Frequently asked questions
What is a good profit margin for a freelancer?
It depends on your industry. Against ONS benchmarks, a freelance creative at 20-25% net margin is around the industry median, while a freelance consultant at 15-20% is solid. As a rule of thumb, sitting inside your industry’s P25-P75 band is healthy, above P75 is strong, and below P25 means your pricing or costs need work. Always include a salary equivalent for your own time before comparing.
Why do margins vary so much within one industry?
Because “industry” hides huge differences in business model. In management consultancy the middle half of firms spans -0.9% to 48.6%: some sell low-margin staff augmentation, others sell high-margin advice. Pricing power, client mix, overheads and how much work is subcontracted all move the number. That is why the spread is a better benchmark than the median.
What is the difference between net margin and gross margin in these tables?
Net margin is profit after ALL costs as a share of revenue. Gross margin only subtracts direct costs of delivery. The ONS table above uses net margins. For example, computer programming shows a 9.9% median net margin but a 12.1% median gross margin. Never compare your net margin against someone else’s gross figure.
How recent is this benchmark data?
The detailed industry figures are from 2019, the latest detailed release in the ONS experimental statistics series on firm-level profitability (1997-2019). Economy-wide ONS figures run to 2024 but measure rate of return on capital, a different metric. The page is dated clearly so you can judge freshness for yourself.
How do I calculate my own profit margin?
Net margin = (revenue minus all costs) divided by revenue, multiplied by 100. Include every cost: software, insurance, accounting, equipment, workspace, and a salary equivalent for your own labour. LancerBill’s profit margin calculator runs the numbers and shows the margin-versus-markup conversion in one place.
Do these benchmarks apply to sole traders?
Not directly. The ONS Annual Business Survey covers employer businesses, and sole traders are not split out separately. The figures are still the best official UK benchmark available, but a sole trader with no staff costs will naturally show a higher margin, so adjust your comparison accordingly and read the limitations section above.
Data last reviewed: October 2026. This guide is for general information only and is not financial, tax or legal advice.
Related reading: what counts as a good profit margin for a small business, and our profit margin vs markup explainer. To run your own numbers, try LancerBill’s profit margin calculator, markup calculator and freelance rate calculator.