Being self employed can be a daunting experience and somewhat confusing.
The facts are, if you are self employed / sole trader in any profession. Then:-
For tax years 2017/18
Class 2 – £2.85 pw (for 1 year £148.20) is due to HMRC unless you have applied for exemption as profits below small profits threshold (SPT) £6,025.
Class 4 – 9% between lower profits limit (LPL) £8,164 and upper profit limit (UPL) £45,000 and 2% above £45,001
Plus Income tax on taxable income less your personal allowance of £11,500.
Tax rates:
Basic rate (BR) 20% (income up to £33,500)
High rate (HR) 40% (income up to £150,000)
Additional rate (AR) 45% (income above £150,001+)
Payment on account (POA): 31 January in tax year, 31 July after the tax years. Late payment penalties applied and payment are made on assuming taxable profits in the following year.