Sole trader
| Income Tax | - |
| Class 4 National Insurance | - |
| Take-home pay | - |
|---|
Limited company
| Corporation Tax | - |
| Employer National Insurance | - |
| Income Tax and NI on salary | - |
| Dividend tax | - |
| Personal take-home pay | - |
|---|---|
| Cash retained in the company | - |
What this calculator assumes
- 2026/27 rates for England, Wales and Northern Ireland. Scottish Income Tax bands are different and are not modelled.
- Sole trader: Income Tax with a £12,570 personal allowance (reduced above £100,000), Class 4 National Insurance at 6% between £12,570 and £50,270 and 2% above. Class 2 is treated as paid.
- Limited company: Corporation Tax at 19% up to £50,000 and 25% above £250,000 with marginal relief between; employer National Insurance at 15% above £5,000 with no Employment Allowance; employee National Insurance at 8% and 2% on any salary above £12,570; dividend tax at 10.75%, 35.75% and 39.35% after a £500 allowance.
- The company has one director, no other employees, no associated companies, and pays no pension contributions or benefits.
- Student loans, other income, the trading allowance, marginal rate effects around £100,000 and the timing of payments are not modelled. Cash retained in the company is not taxed here, but it will be taxed when you take it out.
The comparison changes a lot depending on how much you leave in the company, pension planning and the cost of running it. Rates change at each Budget, so treat the results as illustrative. Read our guide or get in touch for a tailored calculation.
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