What are the legal requirements for sole traders?
June 1, 2022What is a sole trader?
What are the legal and financial requirements to be a sole trader?
Registering for Self Assessment
Income Tax
England, Wales and Northern Ireland 2022/23 Tax Bands
Band | Taxable Income | Tax Rate |
---|---|---|
Personal Allowance | Up to £12,570 | 0% |
Basic Rate | £12,571 to £50,270 | 20% |
Higher Rate | £50,271 to £150,000 | 40% |
Additional Rate | £150,000+ | 45% |
Scotland 2022/23 Tax Bands
Band | Taxable Income | Tax Rate |
---|---|---|
Personal Allowance | Up to £12,570 | 0% |
Starter Rate | £12,571 to £14,732 | 19% |
Basic Rate | £14,733 to £25,688 | 20% |
Intermediate Rate | £25,689 to £43,662 | 21% |
Higher Rate | £43,663 to £150,000 | 41% |
Top Rate | £150,000+ | 46% |