How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7117
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

How much do a small business pay for tax and national

This answer was rated:

How much do a small business pay for tax and national insurance in UK

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

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. and other Tax Specialists are ready to help you