|Class 1 (employees)||No||No|
|Class 1 (employers)||Yes||Yes|
All employers regardless of whether they are sole traders, partnerships or companies pay class 1 national insurance, however a sole trader does not pay class 1 national insurance on his own earnings.
Rates and council tax will be due if you operate out of a business premises. I f you operate out of a room in your house which you do not use exclusively for business then you should not be liable to extra local government taxes.