The UK tax system is a complex arrangement of tax bands, allowances, and relief schemes. The amount of tax that you pay, and even how you pay it, depends on the way that you earn money.

For instance, there are different tax rules depending on whether you’re a sole trader, a limited company, or another type of business structure. There are also different tax rates which will affect you if you’re an employee or an employer (or even both, which can happen if you’re the owner and director of your own company).

Tax rates and allowances can be confusing, so our guide explains what the tax rules are for different types of business, and what they mean for you. We also explain what the thresholds are, to help you be as tax efficient as possible.

The information presented in this article is provided as general guidance, it should only be used as the basis for further research or requesting professional advice.