💼 National Insurance and Income Tax Guidance – UK

✅ Understand Your Tax Obligations and Avoid HMRC Surprises

If you're working in the UK as a sole trader, freelancer, or director of a Ltd company, you need to pay two key taxes:
Income Tax and National Insurance Contributions (NIC). At YUDEY, we provide clear, personalised guidance on how much you owe, when to pay, and how to minimise your tax bill legally — whether you work alone or run a business.

📌 What Is Income Tax?

Income Tax is paid on profits or income earned from:

  • Self-employment

  • Employment (salary or wages)

  • Rental income

  • Dividends or savings

  • Pensions or benefits

For the 2024/25 tax year, the personal allowance is £12,570 — you don’t pay tax on income below this.

Income Band Tax Rate
£0 – £12,570 0% (personal allowance)
£12,571 – £50,270 20% (basic rate)
£50,271 – £125,140 40% (higher rate)
Over £125,140 45% (additional rate)

📌 What Is National Insurance (NI)?

National Insurance Contributions fund UK state benefits (e.g. pension, healthcare) and apply to both employees and self-employed.

Class Who Pays 2024/25 Rate
Class 1 Employees 8% (reduced from 10%) over £12,570
Class 2 Self-employed £3.45 per week (flat rate)
Class 4 Self-employed with profits > £12,570 6% on profits between £12,570–£50,270

Self-employed individuals pay Class 2 + Class 4 via Self Assessment. Directors pay Class 1 via payroll.

🧾 How YUDEY Helps

Service Description
Income tax calculation Based on salary, dividends, rental income, etc.
NI contribution planning Ensure you're paying the right class at the right rate
Self Assessment filing (SA100) We report both income tax and NI to HMRC
PAYE setup and salary planning For directors and small business owners
Tax efficiency advice Reduce tax legally with allowances and expense planning
Multilingual support Clear explanations in English, Ukrainian, or Polish

⚠️ Deadlines & Penalties

Task Deadline
Register for Self Assessment 5 October
Submit SA100 31 January
Pay income tax & NI 31 January
Make second tax payment (if required) 31 July

Late filing = £100+ fine. Interest charged on late tax payments.

🧑‍💼 Who Needs This Guidance?

  • Self-employed individuals (sole traders, freelancers)

  • Ltd company directors receiving dividends and salary

  • UK landlords with rental income

  • New migrants unsure how UK tax works

  • Anyone earning over £12,570 outside PAYE

🛡️ Why Choose YUDEY?

  • Friendly team that explains UK tax in plain language

  • Tax optimisation tailored to your income model

  • Registered HMRC agents — we deal with them so you don’t have to

  • Support in 🇬🇧 English, 🇺🇦 Ukrainian, 🇵🇱 Polish

  • Affordable flat rates for individuals and business owners

📞 Unsure About Tax or NI? Let’s Talk.

Avoid unexpected tax bills and legal trouble.
Contact YUDEY for expert guidance on Income Tax and National Insurance — we’ll help you plan, file, and save.

Do you have any questions? You can ask them to our specialists
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