Sole Trader vs Limited Company Calculator
Compare your take-home pay and tax obligations as a Sole Trader versus operating through a Limited Company for the 2024/25 tax year.
Built for UK users • Simple estimates • No email required
Your Details
Enter your estimated annual figures.
Ltd Company Assumptions
Default is optimal salary for 24/25 (£12,570).
Your Results Summary
Based on £60,000 revenue for 2024/25
Sole Trader Take Home
£43,211
Ltd Company Take Home
£43,975
Recommended: Limited Company
Operating as a Limited Company yields an annual tax saving of £763 compared to the alternative.
Sole Trader
Taxable Profit£55,000
Income Tax-£9,432
National Insurance-£2,357
Take Home Pay£43,211
Limited Company
Corporation Tax-£8,062
Personal Income Tax-£0
Dividend Tax-£2,963
Take Home Pay£43,975
Which one should you choose?
Here is a quick breakdown to help you decide.
When Sole Trader Makes Sense
- You are just starting out with low profits (usually under £30k).
- You want minimal setup, administration, and accounting costs.
- You want complete privacy (no public register of your earnings).
- You plan to withdraw all profits for personal use immediately.
When a Limited Company Makes Sense
- Your business profits consistently exceed £35,000 to £40,000.
- You want limited liability protection for personal assets.
- You plan to leave some profits in the business to fund future growth.
- You are looking for outside investment or planning to sell the business.
Real-world Scenarios
See how different earning levels affect take-home pay.
Freelancer
£35k Revenue • £2k Expenses
Sole Trader£27,330
Ltd Company£28,552
Difference+£1,222
Most Common
Contractor
£60k Revenue • £5k Expenses
Sole Trader£41,600
Ltd Company£44,305
Difference+£2,705
Consultant
£100k Revenue • £10k Expenses
Sole Trader£60,880
Ltd Company£66,903
Difference+£6,023