Sole Trader vs Limited Company
Which Structure Saves You More?
Compare your tax position as a sole trader against running a limited company. See which option keeps more in your pocket.
£
Total business income before any deductions.
£
Add only allowable business expenses.
Taxable Profit
£0.00
Result
—
—
✓ Lower Tax
ST
Sole Trader
Self-employed
Income
Personal Allowance£12,570
Taxable Income£0
Income Tax
20% basic rate£0
40% higher rate£0
45% additional rate£0
Total Tax
£0
0% effective rate
✓ Lower Tax
LTD
Limited Company
Corporation Tax
Income
Personal AllowanceNot available
Taxable Profit£0
Corporation Tax
19% small profits£0
25% main rate (with marginal relief)£0
Total Tax
£0
0% effective rate
!
Important: To access money left in the limited company, you'll need to pay additional dividend tax on top of corporation tax.
Basic: 10.75%
Higher: 35.75%
Additional: 39.35%
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This calculator is for illustrative purposes only and does not constitute professional tax advice.
For personalised planning, speak with our advisors.
© Hammer Ledger Tax Ltd
© Hammer Ledger Tax Ltd
