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. If you’re already working as a sole trader, enter your annual profits into the tax calculator to work out if incorporating a limited company might help you to save money (but just remember there are other considerations when deciding between the two!).

This calculator assumes:

• Figures are based on a full tax year
• You are the only employee and director of the company and will take a salary up to the National Insurance (NI) Primary threshold of £12,570 (so although the company will incur NI as an employer, these are an expense which will reduce your bill for Corporation Tax)
• 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.