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Sole Trader to Ltd

Sole Trader to Ltd

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A friend of mine is currently a sole trader but he now expects to make a profit of around £50,000 this tax year. I was looking into the comparisons of tax & take home between sole trader & ltd and wanted to check these figures are correct: SOLE TRADER;

£50,000.00 NET PROFIT
£10,000.00 PERSONAL ALLOWANCE
£40,000.00  
   
£9,627.00 TAX
   
£143.00 CLASS 2 NIC
£3,214.51 CLASS 4 NIC
   
   
£12,984.51 TOTAL TAX & NI
   
   
£37,015.49 TAKE HOME

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By alberto1969
21st Apr 2014 15:02

AS LTD:

£50,000.00NET PROFIT BEFORE PAYE SALARY TAKEN  £7,920.00PAYE SALARY  £42,080.00PROFITS SUBJECT TO CORP TAX  £8,416.00CORPORATION TAX  £33,664.00AVAILABLE AFTER CORPORATION TAX  £33,664.00TAKEN AS DIVIDENDS  £778.00TAX TO PAY (APPROX)  £9,194.00TOTAL TAXATION  £41,584.00TAKE HOME 

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