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self employed tax rate
3 Answers
what is the amount you are allowed to earn up to before paying 40% tax on CIS self employed basis
thanks
thanks
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Irrespective of whether you're an employee or self-employed, HMRC will tax your earnings above �33,000 at 40%.
Source:
http://www.hmrc.gov.uk/rates/it.htm
Chris
Source:
http://www.hmrc.gov.uk/rates/it.htm
Chris
AAGH!!!
A thousand aplogies. I've just realised that the table in that link refers to 'taxable income' and not just 'income'. The first �5035 that you earn isn't taxed. (It's your 'personal allowance'). So, the 40% rate doesn't actually cut in until your total income exceeds �33,300 + �5,035 = �38,335.
Sorry!
Chris
A thousand aplogies. I've just realised that the table in that link refers to 'taxable income' and not just 'income'. The first �5035 that you earn isn't taxed. (It's your 'personal allowance'). So, the 40% rate doesn't actually cut in until your total income exceeds �33,300 + �5,035 = �38,335.
Sorry!
Chris
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