How Much Tax Does a Sole Trader Pay in the UK?

Sole traders pay tax on their business profits through Self Assessment.

The main taxes include:

• Income Tax

• Class 2 National Insurance

• Class 4 National Insurance

Income tax bands currently include:

• 20% basic rate

• 40% higher rate

• 45% additional rate

Understanding allowable expenses is essential to ensure the correct taxable profit is reported. If you would like advice on the most tax-efficient structure for your business, contact Cleartech Accounting for a consultation.