self employed Archives | Numbers Knowhow https://numbersknowhow.co.uk/tag/self-employed/ Cash flow and financial planning made easy Thu, 21 Mar 2024 13:49:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://numbersknowhow.co.uk/wp-content/uploads/2022/02/cropped-Favicon-Cog.png self employed Archives | Numbers Knowhow https://numbersknowhow.co.uk/tag/self-employed/ 32 32 Choosing Your Business Structure To Save Tax https://numbersknowhow.co.uk/choosing-your-business-structure-to-save-tax/ Fri, 19 May 2023 09:49:21 +0000 https://numbersknowhow.co.uk/?p=11591   Sole trader or limited company and Choosing your business structure to save tax ?  Previously I talked about the differences between a sole trader and limited company.  What you need to consider when deciding what business structure, you should adopt.     You cannot make that decision without looking at tax. Moreover, how it works and how much you pay, and which is better.  When it comes to crunching the numbers, I have just the thing for you!  FREE online business and tax calculators. More of that later. Sole traders and taxation HMRC refers to sole traders as self-employed so that’s the term I will use.  In normal speak self-employed refers to working for yourself.  As a sole trader, or you pay pay Income Tax and National Insurance on your tax profits. Furthermore, the tax people (HMRC) see your profits as your income, just as they would see wages and salaries as income. The good news is that some of your tax profits are free from income tax and National insurance.  Most people in the UK get a Personal Allowance of tax-free income. That tax free pot applies to income from all sources, for example self-employment, rental profits, wages and salaries. What is […]

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