Tax  Sole traders/partnerships  Companies 
 Income tax  Yes  No
 Corporation tax  No  Yes
 National Insurance
 Class 1 (employees)  No  No
 Class 1 (employers)  Yes  Yes
 Class 2  Yes  No
 Class 3  Yes  No
 Class 4  Yes  No
 VAT  Yes  Yes
 Rates  Yes  Yes
 Council tax  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.