Sole Traders

Sole traders tax advice by the experts in Kidderminster

Speak with G H Herbert & Co to discover more about tax brackets for non-salaried individuals.

Tax advice for self-employed individuals

Because of the tax system, the self-employed have a competitive advantage over businesses which employ people in the usual way. This is firstly because the National Insurance payable in respect of people who are conventionally employed (and subject to P.A.Y.E.) is much higher than for those who are self-employed, and secondly because of the additional VAT. VAT does not have to be charged by those in self-employment provided their turnover does not exceed the registration threshold (currently £85,000).

Save your hard earned money

As an example, a self employed person might charge £100 to a customer, and after paying his own Income Tax and Class IV National Insurance, be left with a net £71.00. If, however, the same customer were to have the job done by a business which sent out one of its employees to do the job, and the firm were to pay the employee such gross amount as to give him an extra £71.00 in net pay, the firm would have to charge the customer £142.58, even assuming no extra profit for the employer.

We do not want you to go through this and this is why we offer fully unbiased advice. We will understand your requirements and provide you a course of action that suits you the best. For further information, please call and speak with us.