The tax rates will change depending on whether you are a Sole Trader or a Limited Company. We’ve tried to make this easy to understand with a summary.
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.
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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As part of HMRC’s Making Tax Digital, sole traders will soon be required to complete 4 tax submissions per year instead of 1.
Take a look at the latest sole trader tax rates for the 2021/22 as well as our advice on how to prepare for the new tax year.