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Sole Trader or Limited Company

Are you better off as a Limited Company ? This page lets you assess how much Tax and National Insurance could be saved by converting from a Sole Trader to a Ltd Company. For Partnerships use your share of Profits.

Profit for the year (£6,000-£100,000) Ltd Company Salary (up to £50,000)     Tax Due for Sole Trader Tax Due for Ltd Company Saving Maximum Dividend (Net)

Enter your projected trading profits into the Profit box on the right. A lower Salary produces greater savings as up to 23.8% of salary can go in N.I.

Dividends make up for a low salary. The Dividend as calculated provides an estimate of the total Net Dividend that can be taken before 40% tax. For joint shareholdings the Dividend can be doubled.

All figures assume there is NO other taxable income to be taken into account.