This document outlines the UK tax rates for sole traders in the 2010-11 tax year. It shows that the first £6,475 is tax-free due to the personal allowance. Income up to £43,875 is taxed at 20%, income from £43,875 to £150,000 is taxed at 40%, and any income over £150,000 is taxed at 50%. It also notes that the personal allowance is reduced pro-rata for income over £100,000. National insurance contributions are 8% on profits between £5,075 and £43,875.

1. Tax Bathtub 2010-11
(Sole trader)

2. Tax Bathtub 2010-11
(Sole trader)

3. Tax Bathtub 2010-11
(Sole trader)

4. Tax Bathtub 2010-11
(Sole trader)
TAX

5. Tax Bathtub 2010-11
(Sole trader)
TAX
NI

6. £150K
£125K
£100K
£75K
£50K
£25K
TAX NI

7. £150K
£125K
£100K
£75K
£50K
£25K
IC
2N
ss
Cla
TAX NI

8. £150K
£125K
£100K
£75K
£50K
£25K
IC
2N
ek er
we 0 p
ss
.4
Cla
£2
TAX NI

9. £150K
£125K
£100K
£75K
£50K
£25K
IC
2N
ek er
we 0 p
ss
.4
Cla
£2
TAX NI

10. £150K
£125K
£100K
£75K
£50K
£25K
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
.4
Cla
£2
TAX NI

11. £150K
£125K
£100K
£75K
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
.4
Cla
£2
TAX NI

12. £150K
£125K
£100K
£75K
£43,875 to 150K – 40%
(affects 10% of earners in UK)
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
.4
Cla
£2
TAX NI

13. £150K
£125K
£100K
£75K
£43,875 to 150K – 40%
(affects 10% of earners in UK)
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
Personal allowance reduced pro-rata
.4
Cla
£2
TAX NI

14. Over £150K – taxed at 50%
(affects 1% of earners in UK)
£150K
£125K
£100K
£75K
£43,875 to 150K – 40%
(affects 10% of earners in UK)
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
Personal allowance reduced pro-rata
.4
Cla
£2
TAX NI

15. Over £150K – taxed at 50%
(affects 1% of earners in UK)
£150K
£125K
£100K
£75K
£43,875 to 150K – 40%
(affects 10% of earners in UK)
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
Personal allowance reduced pro-rata
.4
Cla
£2
TAX NI

16. Over £150K – taxed at 50%
(affects 1% of earners in UK)
£150K
£125K
£100K
£75K
£43,875 to 150K – 40%
(affects 10% of earners in UK)
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
Personal allowance reduced pro-rata
.4
Cla
£2
Class 4
TAX NI
8%!

17. Over £150K – taxed at 50%
VAT
(affects 1% of earners in UK)
£150K
£125K
£100K
£75K
£43,875 to 150K – 40%
(affects 10% of earners in UK)
£50K
The next £37,400 taxed at 20%
£25K
(up to £43,875 before business allowances)
IC
2N
ek er
£6,475 - Pers Allowance
we 0 p
ss
Personal allowance reduced pro-rata
.4
Cla
£2
Class 4
TAX NI
8%!

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