Thank you for your question
Sole trader -
If you trade as a sole trader (small business with profits upto £50,000), you would pay
- Income tax at the rate of 20% on income after tax free personal allowance of £12,500
- Class 2 NI (for self employed) Flat rate per week £3.00 where profits exceed £6,365 per annum
- Class 4 NI (for self employed) 9% on profits between £8,424 - £50,000
LTD company -
Corporation tax on profits at 19%
Class 1 NI on salary between £166-£962 per week
employee contribution 12% and employer contribution 13.8%
My aim is to give you a professional service. I hope this is helpful and answers your question.
Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.