Article Abstract:
Self-employed persons in the UK have some tax benefits over employed persons. Their liability for National Insurance payments is not as high. They pay either Class 1 or Class 4 National Insurance but they forego their entitlement to some state benefits because of this arrangement. They can also reduce their income tax liability by deducting from their income any outgoings related to their business. However, a self-employed person must register for valued added tax if their annual turnover is more 50,000 pounds sterling.
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Article Abstract:
Small businesses could make impressive annual tax savings by operating as a company rather than as a proprietor or sole trader. The British government may however withdraw benefits to such businesses due to which self-employment may be the best option to do business but one must also look into other areas before taking a final decision.
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Article Abstract:
Financial advice is given for the taxing of income earned by self-employed people, with ways suggested for reducing the amount paid on taxable income.
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