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Tax thresholds for sole trader
dulcettones
Posts: 2 Newbie
in Cutting tax
I am registered as a sole trader with the Inland Revenue.
What I wondered is once I've deducted my expenses etc. from my total earnings - say I have a figure of 14k - does that mean that whole figure is taxed?
Or since I'm self-employed it a certain figure tax-free?
Regards, DT
What I wondered is once I've deducted my expenses etc. from my total earnings - say I have a figure of 14k - does that mean that whole figure is taxed?
Or since I'm self-employed it a certain figure tax-free?
Regards, DT
0
Comments
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Yes .. you're allowed £5435 free of tax (08-09) then (this table not updated until after the Budget 12th March) the rest of the £8.6k would be at 20% (reduced from 22% this year .... but the 10% band disappears) :-
http://www.hmrc.gov.uk/rates/it.htmIf you want to test the depth of the water .........don't use both feet !0 -
A friend of mine seems to think these are the figures for regular full time employment. And there are different figures for the self-employed. Is he talking nonsense?0
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he is pulling your leg - why would there be different tax allowances and rates for self employed poeple?£705,000 raised by client groups in the past 18 mths :beer:0
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dulcettones wrote: »Is he talking nonsense?
The pure and undiluted kind!
The allowances are the same. It only appears to us PAYE captives that the self-employed enjoy preferential rates!If you want to test the depth of the water .........don't use both feet !0
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