A limited company is a separate legal entity that pays Corporation Tax on its profits, 19% on profits up to £50,000 and 25% above £250,000 with marginal relief between, and you pay yourself through salary and dividends. At 2026/27 rates a sole trader usually keeps more if all profit is taken out, so a company tends to make sense for other reasons, such as keeping profit in the business, pensions or limited liability. We run your own numbers first.
Reviewed by Yasser Mahmood, ACCA and Zakir Gire, FCCA, ACCA-registered accountants at Viewcount Accounting. Last reviewed: . About us
Should a creator set up a limited company?
It depends on your numbers and your plans. At 2026/27 rates, if you take all the profit out of the business, a sole trader usually keeps more than a limited company across typical creator profit levels. The old advice to incorporate once you reach £30,000 to £40,000 no longer holds.
A company can still be the right choice when you leave profit in the business to reinvest, want pension contributions paid by the company, want limited liability, work with brands that require a company, or have a spouse who is a genuine shareholder or employee. We will tell you plainly which side of the line you are on. Try the sole trader vs limited company calculator for a first look.
What's included
Incorporation at Companies House, share structure and registration for Corporation Tax
Statutory accounts prepared and filed at Companies House
CT600 return prepared and filed with HMRC
A salary and dividend mix planned around your personal tax position
Kept up to date so your company record stays accurate
Help moving contracts, platform accounts and banking into the company
The 2026/27 numbers that matter
- Corporation Tax: 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between.
- Dividend tax (after the £500 dividend allowance): 10.75% basic rate, 35.75% higher rate, 39.35% additional rate. The basic and higher rates rose by 2 percentage points from 6 April 2026.
- Director salary: employee National Insurance 8% and employer National Insurance 15% above the relevant thresholds. The Employment Allowance is not available where the only employee paid above the threshold is a director.
How it works
- Numbers first. We compare your take-home pay as a sole trader and as a company using your real figures.
- Decision. If a company is right for you, we agree a start date and a plan to move income across.
- Set-up. We form the company, register it with HMRC and set up bookkeeping and payroll for your salary.
- Year-round. We plan dividends, keep an eye on Corporation Tax and prepare the accounts at year end.
Sole trader or limited company: how they compare
| Sole trader | Limited company | |
|---|---|---|
| Tax on profit | Income Tax and Class 4 National Insurance on all profit, whether or not you draw it. | Corporation Tax on company profit, then tax on the salary or dividends you take out. |
| Liability | You are personally responsible for business debts. | The company is a separate legal entity, so liability is generally limited, although directors have legal duties. |
| Taking money out | Profit is yours to draw. | Salary, dividends, pension contributions or repayment of a director's loan. |
| Yearly filing | Self Assessment return. | Annual accounts, Company Tax Return (CT600), confirmation statement and the director's own Self Assessment return. |
| Public record | Nothing is filed publicly. | Company accounts and officer details appear on the public Companies House register. |
| Often suits | Simple set-ups where profit is taken out in full. | Profit left in the business, company pension contributions, brands that require a company or a need for limited liability. |
Try the sole trader vs limited company calculator for a first look, and read our sole trader vs limited company guide for the reasoning behind it.
Paying yourself as a director
Most creator directors take a modest salary and the rest as dividends, but the right split depends on your other income, whether you employ anyone and how much you need to draw. Dividends can only be paid from profits left after Corporation Tax. A salary needs payroll and Real Time Information reporting to HMRC.
Taking money out in any other way, such as personal spending from the company account, creates a director's loan. If you owe the company money at the end of its financial year and have not repaid it within nine months, the company can face an extra Corporation Tax charge on the outstanding amount, plus interest until it is paid or the loan is repaid. We keep a running director's loan account so this never surprises you.
Company deadlines at a glance
| Filing | Deadline |
|---|---|
| Annual accounts to Companies House | 9 months after the company's financial year ends. |
| Corporation Tax payment | 9 months and 1 day after the accounting period ends. |
| Company Tax Return (CT600) | 12 months after the accounting period ends. |
| Confirmation statement | At least once every 12 months. |
| Director's Self Assessment return | The usual 31 January deadline, for directors who need to report dividends or other income. |
| Payroll reporting | On or before each payday, if the company pays a salary. |
Missed Companies House and HMRC deadlines trigger automatic penalties, so we diarise every date for you.
What changes for brands and platforms when you incorporate
Your contracts, invoices, platform payee details and bank accounts all need to reflect the new company. Brands may need new supplier details, and tax information held by platforms such as YouTube may need resubmitting in the company's name. We prepare a checklist so income does not end up partly in your name and partly in the company's. If you earn from US platforms, read our international tax page first.
Limited company FAQs
Official sources
- GOV.UK: Accounts and tax returns for private limited companies
- GOV.UK: Corporation Tax overview
- GOV.UK: Running a limited company, directors' responsibilities
- GOV.UK: If you owe your company money
Last reviewed October 2026. Figures are for the 2026/27 tax year unless stated. Tax rules change, so check GOV.UK or speak to us before you act.