Free comparison tool
Sole trader or limited company?
Enter your annual profit to see a rough, side-by-side take-home estimate for each route. It is a simplified illustration — not financial or tax advice, and not a recommendation either way.
- Free comparison tool
- No account needed
- Built for UK small businesses
- Estimate only — not advice
Not financial or tax advice — speak to an accountant about your own situation. Figures are a rough estimate from a simplified model. Based on 2025/26 rates — check HMRC, rates change. Uses England, Wales & Northern Ireland income-tax rates (not Scotland).
Example figure shown to get you started — change the profit above to match your business and this updates instantly.
As a sole trader
£40,268
estimated take-home a year
- Income Tax
- £7,486
- Class 4 NI
- £2,246
- Class 2 NI
- £0
As a limited company
£40,279
estimated take-home a year
- Director's salary
- £12,570
- Corporation Tax
- £7,112
- Dividends taken
- £30,318
- Dividend tax
- £2,609
Rough difference
£11
In this simplified estimate the limited-company route shows roughly £11 more take-home a year — indicative only, not a recommendation, and before the extra costs and admin a company brings.
What this simplified estimate assumes
- £12,570 director's salary, remaining profit taken as dividends
- Employer National Insurance and the Employment Allowance are NOT included
- rUK rates, 2025/26
- Ignores running costs, accountancy fees and the extra admin of a limited company
- No pension, student loan or other income modelled
This is a simplified estimate to help you think through the difference — not financial or tax advice, and not a recommendation either way. Speak to an accountant about your own situation before deciding.
Based on 2025/26 rates — check HMRC, rates change. Figures use England, Wales & Northern Ireland income-tax rates (not Scotland).
Thinking about which way to set up? Get the steps in plain English.
The LaunchKit Startup Guide walks through registering, the early admin and what to sort first — written for UK small businesses, not accountants.
Get started: Startup GuideFrom £4.99