self employed to paye

topgooner

been offered a job on the cards have been self employed 20 years via sc60 cis will i pay a lot of tax or is it 22 % after the 4850 allowance any advice a great help

nlpnlp

After the tax free personal allowance of £5.035 from 6 April 2005 the first £2,150 is taxable at 10%, £31,150 at 22% and thereafter at 40%. There is also Class 1 National Insurance so between £4,368 and £33,540 you pay 11% and thereafter 1%. The main downsides to being and employee compared to self employed is that you can claim less expenses - travel to work sites, clothes, cleaning, tools, etc. Also the National Insurance is higher than Class 2/4. However, you shoudl have more State Benefits being an employee and have more rights - minimum wage, paid holidays, sick leave, etc.