It's now 9%.It's a bit like Income tax as it's paid on "profits" above a certain amount, that amount for 2011/12 is £7,225 & up to £42,475. Plus 2% on profits above £42,475.
Quote from: ♠Winp®oClean♠ on August 14, 2011, 06:46:39 pmIt's now 9%.It's a bit like Income tax as it's paid on "profits" above a certain amount, that amount for 2011/12 is £7,225 & up to £42,475. Plus 2% on profits above £42,475.How does that tie in with personal allowance then?Are you saying whatever your profits are (income minus personal allowance minus costs) you then are taxed at 20% of that. You then have a figure left and you subtract £7,225 from that and whatever is left you are taxed at 9% of that to work out your Class 4?