Please find below the Income Tax, Class 2 NIC and Class 4 NIC Rates applicable to Sole traders/Self-employed Individuals
Band | Taxable profits | Tax Rate |
---|---|---|
Personal allowance | Up to £12,570 | 0% |
Basic rate | £12,571 to £50,270 | 20% |
High rate | £50,271 to £150,000 | 40% |
Additional rate | Over £150,001 | 45% |
Band | Taxable profits | Class 2 NIC payable |
---|---|---|
Small Profits Threshold (SPT) | Below £6,515 per year | 0 |
Above SPT | Above £6,515 | £3.05 per week |
Band | Taxable profits | NIC Rate |
---|---|---|
Lower Profits Limit (LPL) | Below £9,568 per year | 0% |
LPL to Upper Profits Limit (UPL) | £9,568 to £50,270 | 9% |
Above UPL | Above £50,270 | 2% |