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How much tax does a sole trader pay?

UK Sole Traders need to pay tax on the amount of profit made in a financial year. In the 2021/22 tax year, profit is only subject to tax when your sole trader income exceeds the £12,570 tax-free personal allowance threshold. As well as income tax, sole traders also need to pay Class 2 & 4 National Insurance Contributions and VAT if your annual turnover is over £85,000 within a year.