Free calculator
Sole trader vs limited company
Enter your expected annual profit and we’ll estimate your tax under each structure - and tell you, honestly, which leaves you better off.
£
Your revenue minus business costs.
£
We'll tailor the verdict to your goal.
VerdictBest for you: Limited company
A limited company leaves you roughly £720 better off a year at this profit.
Sole trader
- Income tax
- −£11,432
- National Insurance
- −£2,457
- Total tax
- £13,889 (23.1%)
Estimated take-home
£46,111
Limited company
Better- Corporation tax
- −£8,796
- Employer NI
- −£1,136
- Dividend tax
- −£3,237
- Total tax
- £13,169 (21.9%)
Estimated take-home
£46,831
Estimate for the 2025/26 tax year (England, Wales & NI). Assumes you draw all profit, a director’s salary at the personal allowance with the rest as dividends, no other income, and no Employment Allowance. A limited company also lets you leave profit in the business and defer some tax, not shown here. This isn’t tax advice; check with an accountant before deciding.