Creative Industries Level 5:Payments

Legal statuses affect the tax a company pays and looking at tax in the U.K, you don't get taxed until you earn more than £6,475 a year but looking at tax bands a certain percentage is taxed from the amount you earn yearly such as, from £6,475-£37,400 20% is taxed, from £37,401-£150,000 40% is taxed and from £150,000+ 50% is taxed.

Payment for National Insurance always is a factor as the class type has its payments for example class 2, self-employed pay £2.40 per week or monthly however class 4 self-employed, 8% is taken out from annual profits of £4,875 and an additional 1% if profits exceed this number and class 1's depending on how much they earn whether it be under £6,475, 3.7% is taken out annually by the employer for the employees benefit.