How to Use the Tax Clarify Calculator (Step-by-Step)
A walkthrough of every field — what to enter, where to find the numbers, and how to read your results.
Stop guessing.
See exactly what you owe.
HMRC's numbers don't have to feel like a mystery. Tax Clarify calculates your income tax, National Insurance, and real take-home pay as a UK sole trader — instantly and in language that actually makes sense.
Updated for 2026/27 · No sign-up required · Free forever
Your tax breakdown
Total self-employed income before expenses
Legitimate business costs that reduce your taxable profit
Your take-home pay
£26,820
per year · £2,235 per month
Gross profit
Income after expenses
£35,000
Income tax
20% on £22,430 above your Personal Allowance
-£4,486
Class 4 NI
9% on profits between £12,570 and £50,270
-£2,016
Class 2 NI
£3.45/week flat rate (builds your State Pension)
-£179
Total tax & NI
-£6,681
Effective tax rate: 19.1%
Your income across tax bands
Personal Allowance (0%)
Basic rate (20%)
Higher rate (40%)
Additional rate (45%)
Done in under a minute
Three fields. One clear result. No jargon, no sign-up, no waiting.
Enter your income and expenses
Type in your annual income and any allowable business costs. Round numbers work fine.
We apply the 2026/27 rates
Tax Clarify runs the current HMRC thresholds: income tax by band, Class 2 NI, and Class 4 NI.
Get your full itemised breakdown
See your take-home, every deduction, a plain-English explanation, and a visual tax band chart.
What Tax Clarify does differently
Built for the way freelancers actually think about money — not the way HMRC writes about it.
Instant take-home breakdown
Income tax, Class 2 NI, and Class 4 NI shown separately so you know exactly what each component costs — not just a lump total.
Scenario planning built in
Slide your income up or down and watch every figure update in real time, so you can evaluate new work or rate changes before accepting them.
Plain-English tax band explainer
Each result includes a one-line explanation of why you're paying that amount, so the number makes sense rather than just appearing from nowhere.
Expenses deduction ready
Enter your allowable business expenses and see your taxable profit recalculate automatically, with guidance on what qualifies as a deduction.
Annual and monthly view
Toggle between what you owe per year and what that means per month, so budgeting for your January bill never catches you off guard.
No account, no data stored
Every calculation stays in your browser and disappears when you leave. Nothing is saved, shared, or used to contact you.
Questions answered
The things freelancers actually Google at 11pm before the self-assessment deadline.
Yes. Tax Clarify uses the current HMRC income tax rates, Personal Allowance (£12,570), and National Insurance thresholds for 2026/27. We update figures at each Budget statement. For advice on your specific circumstances, consult a qualified accountant.
Completely. No sign-up, no subscription, and no hidden tier. Every calculation — including the scenario planner and expense deduction — is free with no account required.
Class 2 NI is a flat weekly rate (£3.45/week) paid by sole traders earning above the Small Profits Threshold. It counts toward your State Pension. Class 4 NI is a percentage of profits: 9% on profits between £12,570 and £50,270, then 2% above that. Tax Clarify shows both separately so you always know where your NI goes.
Yes. Enter your self-employed profit alone and the tool calculates the tax and NI owed on that income. To account for your PAYE income reducing your Personal Allowance, adjust the income field to reflect your remaining allowance. Our PAYE vs Self-Employed tool handles the full combined picture.
HMRC gives you a number. Tax Clarify gives you a breakdown, a plain-English explanation, and a way to model different scenarios. Each tax band shows individually, NI components are labelled and explained, and you can adjust expenses or income in real time without re-entering everything.
No account is needed and none will ever be created. Your figures are processed entirely in your browser and are not sent to or stored on any server. Use Tax Clarify as many times as you like, on any device, anonymously.
More tools for sole traders
Every calculator a freelancer actually needs, in one place.
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UK Tax Band Explainer
Interactive 2026/27 bands with your income mapped visually
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Track rolling 12-month turnover against the £90,000 limit
PAYE vs Self-Employed
Side-by-side take-home comparison at any income level
Day Rate Calculator
Convert a salary target into the daily rate you need to charge
Invoice Tax Calculator
The after-tax value of any invoice before you accept it
Income Scenario Planner
Model three income outcomes and compare tax for each
Salary vs Dividend
Limited company take-home across different salary/dividend splits
Allowable Expenses Checker
Every HMRC-approved deduction category with eligibility notes
Pension Tax Relief
How pension contributions reduce your tax bill after relief
IR35 Risk Checker
Questionnaire-based IR35 assessment for your current contract
Working From Home Deduction
Simplified or actual cost method — whichever saves you more
Guides for sole traders
View all guidesHow to Work Out Your Day Rate as a Freelancer
Converting a salary target into a daily rate that covers your tax, NI, and unpaid leave.
How to Claim Working From Home as a Sole Trader
The two HMRC-approved methods for claiming home office costs — and which one saves you more.
How to Plan for Your January Tax Bill Before December
Why most freelancers get caught off guard — and how to use scenario planning to set aside the right amount.
What Is Class 2 and Class 4 National Insurance?
What each covers, what it costs, and how both appear on your tax bill — in plain English.
What Is the VAT Threshold and Do I Need to Register?
When the £90,000 threshold applies, what happens if you cross it, and how to track your turnover.
What Are Allowable Expenses for Self-Employed People?
Every expense category HMRC lets sole traders deduct — with real examples of what counts and what doesn't.
Sole Trader vs Limited Company: Which Takes Home More?
Side-by-side take-home figures at five income levels — sole trader versus limited company director.
Self-Employed vs Employed: The Real Tax Difference
What actually changes on your tax bill when you move from PAYE to self-employment.
I Earned £45,000 as a Freelancer — Here's My Exact Tax Bill
A real worked example: gross income, expenses, tax bands applied, and exact take-home for 2026/27.