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Registering a company

How much can I earn as a Sole Trader before paying tax?

Sole traders have a personal allowance of £12,570 a year so if you earn less than this you won’t have to pay tax.

Unless this is an additional income, in which case all incomes are added together to calculate tax. (Earnings of less than 50k is taxed at a rate of 20% and under 150k is 40%. Over 150K is taxed at 45%.)

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