Personal Tax or Income Tax for sole traders and partnerships are done as part of filling in a tax return which follows the tax year of April to April due to be submitted the following year by 31st Jan.
Morgan Wells will do a set of accounts which includes a profit & loss account, we then use our tax software to input and send you a tax summary for you to agree before we submit your figures to HMRC.
- Your personal Allowance for Income Tax is £12,500 for the tax year 19-20 which means you don’t pay any tax for the first £12,500 profit but you do pay National Insurance.
- Self-employed people have to pay Class 2 NI £3.00 per week over £6,365 profit but you can opt in to pay anyway even if your profits are less and then you are paying towards your government pension. Class 4 NI @ 9% when your profits are over £8632 - £50,000 plus 2% on profits over £50,000