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Author: Cathy Shults


Harmonea work with a number of professions in the following areas:

  • Copywriters
  • HR
  • Insurance
  • IT
  • Mortgages
  • Pensions
  • R & D Tax Credits specialists
  • Social Media
  • Specialist coaches
  • Therapists

If you would like an introduction to any of these people, please let us know as we will be pleased to do an introduction for you.


When to incorporate

This is a question we get asked frequently.  Currently sole traders have to pay personal tax on their profits, Class 2 national insurance on profits over £50,000 at 2% and Class 4 national insurance on profits between £9,501 and £50,000 at 9%.  Sole traders have to pay a payment on account if their annual tax bill exceeds £1000.


Limited companies do not have to pay payments on account or national insurance but have to pay 100% of their corporation tax 9 months and 1 day after the year end at a rate of 19% on profits.


Limited companies can have shareholders unlike soletraders.  When taking the combined personal tax and corporation tax liability for limited companies vs tax and national insurance for soletraders, the rough tipping point is if you have profits of £12,000 or more, it could work out to be more efficient for tax purposes to be a limited company.