Enter your expected annual profit and instantly see your take-home pay under both structures. Includes Income Tax, National Insurance, and Corporation Tax.
| Item | Sole Trader | Limited Company |
|---|
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 the sole trader calculation, we apply Income Tax at the basic (20%) and higher (40%) rates, plus Class 2 and Class 4 National Insurance contributions.
For the limited company calculation, we assume the optimal strategy: paying yourself a salary equal to the personal allowance (£12,570) and taking the rest as dividends. Corporation Tax is applied to the company's profits, and Dividend Tax to the dividend income.
The breakeven point — where a limited company becomes more tax-efficient — is typically around £30,000–£35,000 profit per year, once you factor in the additional accountancy costs of running a company (typically £800–£1,500/year).