Sole Trader vs
Limited Company Calculator.
Enter your annual profit. See exactly what you keep under each structure after all taxes — including corporation tax, NI, and dividends. 2024/25 rates.
Compare your take-home pay
Income minus allowable expenses, before any tax. Use gross revenue if unsure.
2024/25 rates. Limited company assumes salary at personal allowance (£12,570), remaining profit as dividends. Pension contributions not included — these significantly shift the comparison. Not financial advice.
When does incorporation make sense?
The limited company crossover typically sits at £30,000–£40,000 profit — but that ignores pension contributions, which can push the crossover much lower.
Below the crossover, the compliance cost of a limited company (£1,000–£2,000/yr) usually outweighs the tax saving.
IR35 contractors inside the rules get less benefit — income is taxed as employment regardless of structure.
- ·Pension contributions (biggest shift factor)
- ·IR35 / off-payroll working rules
- ·VAT registration implications
- ·Other personal income sources
- ·Business Asset Disposal Relief on exit
- ·Family income splitting
Get the full picture
A Harrow accountant models pension contributions, IR35 status, and long-term exit strategy — not just this year's tax bill.