Small Business Guide
Sole Trader vs Limited Company
Tax Calculator 2026/27
Enter your expected annual profit and instantly see your take-home pay under both structures. Uses a source-dated 2026/27 estimate with Income Tax, National Insurance, employer NI, Corporation Tax and dividend tax assumptions.
💷 Your Income & Expenses
⚙️ Tax Options
📋 Full Comparison Table
| Item | Sole Trader | Limited Company |
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📖 How to Use This Calculator
Enter your expected annual profit — that is, your revenue minus your business expenses, before any tax. The calculator shows your estimated take-home pay under both structures for the 2026/27 tax year.
For a sole trader, the calculation uses 2026/27 Income Tax, the personal-allowance taper and Class 4 National Insurance. Class 2 is treated as paid rather than charged where the statutory condition is met.
For a limited company, the calculator deducts an illustrative salary, employer NI after the selected Employment Allowance, employer pension contributions and Corporation Tax before modelling dividends. It labels results as estimates, not a recommendation.
No one structure is automatically best. Legal liability, administration, company costs, cash retained in the business, pension planning, other income and professional advice can change the appropriate choice.