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Income Tax and NIC Rates for Sole Traders - Martax Accountants

Please find below the Income Tax, Class 2 NIC and Class 4 NIC Rates applicable to Sole traders/Self-employed Individuals

Income Tax Rates for Sole Traders for the tax year 2022/23

BandTaxable profitsTax Rate
Personal allowanceUp to £12,5700%
Basic rate£12,571 to £50,27020%
High rate£50,271 to £150,00040%
Additional rateOver £150,00145%

Class 2 National Insurance Rates for Sole Traders for the tax year 2022/23

BandTaxable profitsClass 2 NIC payable
Small Profits Threshold (SPT)Below £6,515 per year0
Above SPTAbove £6,515£3.05 per week

Class 4 Nation Insurance Rates for Sole Traders for the tax year 2022/23

BandTaxable profitsNIC Rate
Lower Profits Limit (LPL) Below £9,568 per year 0%
LPL to Upper Profits Limit (UPL)£9,568 to £50,2709%
Above UPL Above £50,2702%