Self-employed tax rates summary
James Trowell
Accounting Lead
Posted 4 months ago

A summary of self-employed tax rates for 19/20

Being self-employed means you’re either a Sole Trader or a Limited Company. And the tax rates and rules that apply to you will change depending on which of the two you are.

To make things a little more interesting, as a limited company you then also have two types of taxes. Those that apply to you as a ‘company’, and those apply to you as an ‘individual’ – the director of that company.

We’ve tried to make this a little easier to understand with a quick overview below, with helpful links to find more information on each.

Just click on the ticks below if you want more information about a specific type of tax.

LTD – tax owed as the company

LTD – tax owed as an individual

Sole trader

Corporation tax

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VAT (earnings +85k)

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Income tax

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Class 1 National Insurance (Employee)

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National Insurance (Employers)

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Class 2 National Insurance

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Class 4 National Insurance

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Dividends

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Unsure on whether you should be operating as a Sole Trader or a Limited Company? We have some guidance on this too, here.

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