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Calculate how much tax you will pay on your profits as a limited company versus as a sole trader

Use our free online limited company tax calculator to compare your take home pay as a limited company versus as a sole trader.

Estimate your annual profits to work out if registering your business as a limited company or as a sole trader is more tax efficient.

Or, if you’re already a sole trader, enter your annual profits to calculate the amount you might save by incorporating a limited company.

This calculator assumes that:

  • Figures are based on a full tax year
  • You are the only director of the company and will take a salary up to the National Insurance (NI) threshold
  • You do not have any other income
  • The profit amount is limited to the basic rate threshold, i.e. it is not possible to use it for amounts over the higher rate threshold

If you have more complex circumstances, then please talk to your accountant or one of our accountancy advisers today by calling 020 3355 4047 or by pressing the Live Chat button.

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Looking for more information?

We have a comprehensive range of free resources available

Sole Trader Guide

Discover everything you need to know about operating as a sole trader, including your deadlines and responsibilities.

 7 minutes

Free Download
Limited Company Guide

Discover the deadlines and responsibilities you need to know about when operating as a limited company.

 8 minutes

Incorporating a limited company

Understand how to incorporate a limited company as a sole trader.

 3m 17s

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Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.