Sole trader vs limited company
Would you take home more by going limited? See both options side by side.
Your details
Business income minus allowable expenses.
e.g. higher accountancy fees, the confirmation statement.
| Sole trader: income tax | £15,432.00 |
| Sole trader: Class 4 NI | £2,656.60 |
| Limited: salary at the personal allowance | |
| Limited: corporation tax | £11,168.04 |
| Limited: employer NI | £1,135.50 |
| Limited: your income tax, NI and dividend tax | £6,653.96 |
Want us to handle this for you?
Our accountants can run your payroll, file your tax return and make sure you never pay more than you should.
More than just tax
The limited company figure uses the most tax-efficient salary and dividend mix and assumes all profit is taken out. A company also gives you limited liability and can keep profits in the business at the corporation tax rate — but it means more admin: annual accounts, a CT600, a confirmation statement and payroll. From 6 April 2026 dividend tax rose to 10.75% and 35.75%, so the break-even point is higher than it used to be.
Estimates only, based on 2026/27 rates for typical situations. They are not financial advice — speak to us about your own circumstances. Rates last checked: October 2026 (GOV.UK).