The income tax rates, along with the Class 2 and Class 4 National Insurance rates for 2020/21 are as follows:
The income tax rates, along with the Class 2 and Class 4 National Insurance rates for 2021/22 are as follows:
Small Profits Threshold: If you’re earning below the Small Profits Threshold, you’re not required to pay Class 2 NICs. But if you choose, you may pay Class 2 NICs voluntarily at the end of the tax year.
Lower Profits Limit: If you’re earning up to or below this limit, you’re only required to pay Class 2 NICs.
Upper Profits Limit: If you’re earning up to or below the Upper Profits Limit, you’ll need to pay Class 2 NICs, as well as Class 4 NICs (9%) on profits between the LPL and UPL.
If you’re earning above this limit, you’ll need to pay Class 2 NICs, Class 4 NICs (9%) on profits between the LPL and UPL, and Class 2 NICs (2%) on profits above the UPL.
Our small business accounting guide walks through absolutely everything you need to know if you're considering starting a limited company. From different taxes, limited company advantages/ disadvantages, how to pay yourself, and what your key filing requirements are.
- When to register a Ltd company
- When to register for VAT
- How to take money out of your company
- Dividend tax rates
- Limited company expenses & corporation tax
- Annual accounts and deadlines
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Book a free 20 minute call with an accountant to talk though starting, registering or switching your company.
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- Registering for VAT
- Self assessment
- Sole trader vs limited company
- Dividends and personal tax
- Registering your company
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