PPH’s commission is the most freelancer-friendly tier system on any major UK platform — but only if you understand it. Tell the calculator what you want to take home and which tier you’re at with this client. It returns the exact bid in seconds, after the 20% / 7.5% / 3.5% sliding commission, optional UK VAT, and tax.
PeoplePerHour’s commission tier is genuinely freelancer-friendly — once you reach the 3.5% top tier, you’re paying less than almost any other major platform. But getting there requires you to know exactly which tier each client is at, and that’s the part PPH doesn’t make obvious. You silently graduate from 20% to 7.5% to 3.5%, and most freelancers keep pricing as if they’re still on the first tier long after they’ve crossed it.
If you’ve been on PeoplePerHour for over a year, there’s a real chance several of your repeat clients have crossed into the 7.5% or 3.5% tier and you’re still pricing as if you were paying 20%. That’s leaving money on the table on every bid.
| Tier (lifetime billings with same client) | Commission | Notes |
|---|---|---|
| First £700 | 20% | The hardest tier to climb out of — price knowing you’re at 20% |
| £700 — £7,000 | 7.5% | Most established repeat clients live here |
| £7,000 and above | 3.5% | Closer to direct invoicing than to any competitor platform |
Plus the universal fees:
| Fee | Rate | Notes |
|---|---|---|
| Buyer service fee | ~10% + £0.60 | Charged to client, not freelancer — but affects bid acceptance |
| Pros membership (optional) | £2/month | Unlocks more proposals, priority profile |
| Withdrawal — PayPal | £0.50 | Per withdrawal |
| Withdrawal — Payoneer | Free for $50+ | Per withdrawal |
| Withdrawal — Bank Transfer (UK) | Free | 1–3 working days |
| VAT (UK sellers only) | 20% of commission | If you’re VAT-registered, may be reverse-charged |
All examples use GBP and ignore VAT for simplicity. Add VAT if you’re VAT-registered.
| You want to take home | Client tier | Formula | Bid this |
|---|---|---|---|
| £500 | First £700 (20%) | 500 ÷ 0.80 | £625 |
| £500 | £700–£7K (7.5%) | 500 ÷ 0.925 | £540.54 |
| £500 | £7K+ (3.5%) | 500 ÷ 0.965 | £518.13 |
The same take-home, same project, three different bids depending on tier. This is why PPH rewards long-term client relationships more than any other platform.
It’s a sliding scale based on lifetime billings with each specific client: 20% on the first £700, 7.5% from £700 to £7,000, and 3.5% above £7,000. The tier resets per client, so every new client starts you at the 20% rate.
For repeat clients, yes — the 3.5% top tier is dramatically lower than Fiverr’s flat 20% or Upwork’s flat 10%. For one-off gigs, Upwork is usually cheaper. PPH rewards client retention more than any major competitor.
Your dashboard shows total billings per client. You’re at 20% until you cross £700 lifetime, then 7.5% until £7,000, then 3.5% beyond. Use the slider on this page to match your current lifetime billing with the client you’re bidding to.
For UK sellers, PPH applies a UK VAT (20%) on the commission unless you’re VAT-registered and apply reverse charge. For international sellers, VAT typically does not apply. Open the optional “Apply UK VAT on commission” box in the calculator above to model this.
PayPal withdrawals cost £0.50, Payoneer is free for amounts above $50, and UK bank transfers are free with a 1–3 day clearing window. The calculator focuses on commission; bake the withdrawal fee into your bid manually if it materially affects a small project.
PPH’s Terms restrict off-platform solicitation during active engagement. Once an engagement is fully concluded, direct invoicing is generally acceptable — but check your contract specifics. Long-term clients on the 3.5% tier are already close to direct-invoicing economics, so the upside is smaller than on Fiverr or Upwork.
PPH charges the buyer roughly 10% + £0.60 on top of your bid price. It doesn’t reduce your earnings, but it does inflate the total your client sees — which can affect bid acceptance, especially at lower price points. Mention this in your proposal so the buyer isn’t surprised at checkout.
3 strategies to reach the 3.5% tier faster and keep more of every bid
Every new client starts you at the 20% tier. Don’t bid your ideal rate — bid what you need to take home after the commission. To net £800 with a new client, bid £1,000. Use the calculator above to find the right number before you submit any proposal. Quoting correctly on the first project protects your margins while you’re in the most expensive tier.
The jump from 20% to 7.5% happens at £700 of lifetime billings — often a single mid-sized project. If you can lock in a small retainer or recurring work early in a client relationship, you’ll cross the threshold quickly and keep 12.5 percentage points more of every pound you earn after that. On a £2,000 project at 7.5% vs. 20%, you keep £250 more.
At the 3.5% top tier (above £7,000 lifetime with one client), PPH becomes one of the most efficient platforms anywhere. A client you’ve billed £10,000 with is now costing you £0.035 per pound — compared to £0.20 for a new client. Your effective rate on repeat work is dramatically higher without raising your price. Investing in client retention isn’t just good business; on PPH it has a direct, calculable financial return.
The same £2,000 project pays out very differently depending on where you invoice it. PPH’s sliding tier means a long-term client costs you almost nothing in commission — but a brand-new one costs more than Upwork.
| Platform / Setup | Commission | You keep | Caveat |
|---|---|---|---|
| PeoplePerHour (20% — first client project) | £400 | £1,600 | Highest tier, every new client starts here |
| PeoplePerHour (7.5% — established client) | £150 | £1,850 | Most repeat clients land here |
| PeoplePerHour (3.5% — long-term client) | £70 | £1,930 | After £7,000 lifetime with one client |
| Upwork (10% flat) | £200 | £1,800 | Plus Connects costs to win the bid |
| Fiverr (20% flat) | £400 | £1,600 | Same flat rate forever, no tier improvement |
| Direct + Stripe (2.9% + £0.30) | ~£58 | £1,942 | Requires off-platform agreement |
PeoplePerHour’s 3.5% tier is closer to direct invoicing than to any other platform. It rewards client retention more than any competitor — but only if you remember to bid as if you’re on it.
Tell the calculator what you want to take home and which tier you’re at with this specific client. It returns the exact bid in seconds, with optional UK VAT and tax buffer baked in.