Sole trader or limited company calculator
Compare your take home pay as a sole trader and through a limited company on the same profit, using the 2026/27 rates published on GOV.UK.
ACCA qualified accountants with over 20 years in practice
Enter your profit to compare.
| Profit | £0 |
|---|---|
| Income Tax | £0 |
| Class 4 National Insurance | £0 |
| Take home | £0 |
| Director's salary | £0 |
|---|---|
| Employer National Insurance | £0 |
| Corporation Tax | £0 |
| Dividends paid out | £0 |
| Employee National Insurance | £0 |
| Income Tax on salary | £0 |
| Dividend tax | £0 |
| Take home | £0 |
This is an estimate only, not advice. It leaves out the running costs of a company, pensions, other income and the extra admin a company brings, and it assumes the company pays everything out as dividends. Get advice before deciding.
Talk it through: free quoteIllustrative estimate only. It uses the 2026/27 rates and allowances published on GOV.UK (opens in a new tab) (checked 15/10/2026) and only the figures you enter. It is not tax advice and does not cover your full situation, so we accept no liability for decisions made from it (see our terms). For a figure you can rely on, get a free quote or book a call.
How the comparison works
As a sole trader you pay Income Tax on your profit after your Personal Allowance, and Class 4 National Insurance at 6% between £12,570 and £50,270 and 2% above.
Through a company, the calculator pays you a salary of £12,570 unless you choose another figure, the point where employee National Insurance starts. The company pays employer National Insurance at 15% on salary above £5,000.
The company then pays Corporation Tax: 19% on profits up to £50,000, 25% over £250,000, and marginal relief in between. What is left is paid to you as dividends, with the first £500 tax free and then 10.75%, 35.75% or 39.35% depending on your band.
The rates in this calculator come from GOV.UK. Last checked .
Questions about going limited
Why does the calculator use a salary of £12,570?
It is the point where employee National Insurance starts, and it uses up your Personal Allowance. The company still pays employer National Insurance on salary above £5,000. You can type in a different salary to compare.
Does going limited change how I get CIS back?
Yes. A limited company claims its CIS back through payroll during the year and online after the year ends, not through a personal tax return.
Does it work for Scottish taxpayers?
Yes. Tick the box and the sole trader side and any salary use the six Scottish bands. Dividends are taxed at the same rates across the UK.
What does the calculator leave out?
The running costs of a company, such as accounts and company filing, pensions, other income, the Employment Allowance and the extra work of running a company. That is why we go through it with you before you change anything.