Enter comparable profit
Use profit after allowable business expenses, before your personal tax.
← All calculatorsBUSINESS STRUCTURE CALCULATOR
Limited company vs sole trader
Compare the estimated amount you could keep under the two most common UK business structures.
HOW THIS CALCULATOR WORKS
A useful estimate starts with the right inputs.
The calculator compares the estimated personal outcome from trading in your own name with operating through a limited company. It considers business profit, other income and pension contributions, then applies the relevant personal and company tax assumptions.
Add your wider income
Other taxable income can change allowances and the rate applied to business profits.
Compare the full picture
Review the estimated tax outcome alongside administration, liability and long-term plans.
UNDERSTAND YOUR RESULT
What the numbers are telling you.
Sole-trader estimate
The amount left after indicative Income Tax and self-employed National Insurance.
Company estimate
An illustrative extraction outcome after Corporation Tax and relevant personal taxes.
Estimated difference
A tax comparison—not a recommendation that one legal structure is automatically better.
BEFORE YOU ACT
Important points the headline number cannot decide.
- ✓How and when you plan to withdraw company profits
- ✓The cost of accounts, payroll and company administration
- ✓Commercial risk and limited liability
- ✓Pension, investment and future sale plans
CHOOSING A BUSINESS STRUCTURE
Discuss my options →Check the tax result against the commercial reality.
An accountant can model your extraction options and explain the ongoing obligations before you incorporate or change structure.
COMMON QUESTIONS
What to know before relying on the estimate.
Is a limited company always more tax-efficient?+
No. The answer depends on profit, extraction method, other income, administrative costs and non-tax factors. At some profit levels the tax difference may be modest.
Does the company result include dividends?+
The production calculation should state the assumed salary-and-dividend mix clearly. Your developer should expose this assumption alongside the result.
Is this calculation tax advice?+
No. It is an indicative estimate based on the information entered and the rules configured for the selected tax year. Your final position can change because of other income, reliefs, benefits, residence status and personal circumstances.
NEED CERTAINTY?
Speak to a tax expert →Make the next decision with confidence.
A vetted tax professional can check the assumptions and help you act on the result.