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ACCA Strategic Professional · Advanced Taxation (UK) · Income tax: income from self-employment

Under the ATX-UK tax rates for Finance Act 2025, what is the Class 4 charge on a sole trader's profits that fall at or below £12,570?

The charge is nil. Class 4 contributions only begin on profits above £12,570, after which 6% applies up to £50,270 and 2% applies above that.

  1. ANilCorrect
  2. B6%
  3. C2%
  4. D8%

Explanation

The Class 4 table shows a nil rate on profits from £1 to £12,570. 6% applies from £12,571 to £50,270, and 2% applies above that. 8% is an employee Class 1 rate.

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