Calculator
Limited company vs sole trader take-home
Estimate the take-home difference between trading as a sole trader and extracting profit through a limited company with a basic salary-and-dividend model.
Potential limited company advantage of £720 per year.
£46,111
Estimated sole trader take-home after Income Tax and Class 4 NI.
£46,831
Estimated limited company take-home after salary, employer NI, Corporation Tax and dividend tax.
£8,796
Corporation Tax on profit after salary and employer NI.
£3,237
Estimated dividend tax on the remaining profit paid as dividends.
This is a simplified comparison. It assumes salary is paid at the level entered, employer NI at 15% above £5,000, no employment allowance, and all remaining profit is taken as dividends. Real outcomes depend on your full position and company costs.