Starting a business as a sole trader in 2014?
What are the tax rates?
Taxation must be a major factor when making the decision to go self employed?
If people knew how much they could make before paying tax they would rush in to the opportunities available
Start up loans available up to £25,000
New Enterprise Allowance for unemployed including weekly benefits of £65 for first 13 weeks and then £33 for next 13 weeks, and potential loan of £2,500
Free advice everywhere
YOU ONLY PAY TAX ON PROFIT
2014-2015 rates are simple
NO TAX TO PAY on first £10,000 profit. NOTE PROFIT!
20% tax on all profits ABOVE £10,000 up to £31,865
40% above £31,866 unto £150,000 profit, remember the word is PROFIT
You pay this in arrears
2014-2015 tax year requires any tax due to be paid at the end of January 2016!
Class 4 National Insurance contributions are payable on profit above £7,956 at the rate of 9%. Just as in Tax, you pay this on PROFIT and not until January 2016
Class 2 national insurance is payable by everyone that registers for self employment on a weekly basis usually by direct debit at the rate of £2.75 per week.
You can apply for small earnings exemption if you believe that your business will make a profit of less than £5,885
You can claim for most things you buy to start your business and rehired to run your business. best visit HMRC website for more details. My tip is keep receipts and claim if you believe it has been genuinely purchased to run your business.
So that is it, what are you waiting for?
Ring 01253 477147 and get our help, it is all free.
by Geoff Reeves - getstartedblackpool