The following is a guest post by Justin Smith
Like most countries, traders in the United Kingdom pays various forms of taxes. However, there is a difference in how companies engaged in trade face a different tax as compared to a sole trader. When it comes to tax on profits, sole traders are required to pay class two and four National Insurance and income tax on their taxable business profits. Those in partnerships should pay the same for their share of the benefits. Companies, on the other hand, are required to pay corporation tax on their taxable profits. The companies then subject their employees to paying NICS and PAYE as a way of covering some of the charges incurred. Shareholders of the enterprise pay taxes for their dividends.