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How much is tax on income, tax percentage rates and income returns The answer to how much is tax on income and the income tax percentage paid is dependent upon the status of the individual being employed, self employed or incorporated as a limited company. Employees pay income tax and national insurance under the paye system while self employed individuals submit self employed income returns and although they receive the same UK allowances they pay different national insurance. Bookkeeping Spreadsheets Satisfy Small Business Accounting Needs There is a major difference between sophisticated accounting software used by larger businesses for financial control purposes than is required for small business where a simple bookkeeping spreadsheet is sufficient.