Sole Trader vs Limited Company
Free & Trusted Calculator 2025/26
Enter your income once and instantly see the difference between sole trader vs limited company tax in 2025/26. Shows your exact annual saving and the crossover point where incorporating pays off. Type numbers with or without commas.
| Profit | — |
| Income tax | — |
| Class 4 NI | — |
| Class 2 NI | — |
| Take-home | — |
| Corp tax paid | — |
| Dividend tax | — |
| Salary tax+NI | — |
| Take-home | — |
Sole Trader vs Limited Company — Free 2025/26 Calculator
Our free sole trader vs limited company calculator shows you the exact tax difference at any income level for 2025/26. Unlike generic guides that give rough estimates, this sole trader vs limited company calculator uses the actual HMRC 2025/26 tax rates — income tax, National Insurance, corporation tax and dividend tax — to give you the precise pound-for-pound comparison. The sole trader vs limited company crossover point appears automatically in your results.
📊 How to use this sole trader vs limited company calculator
Enter your annual profit once — the same figure is used for both structures. Adjust the director salary (usually £12,570) and annual expenses for the limited company side. The sole trader vs limited company calculator shows exactly how much more you keep in each structure and tells you whether a limited company is financially worthwhile at your income level.
When Is a Limited Company Better Than a Sole Trader?
The sole trader vs limited company crossover typically occurs at £30,000–£35,000 profit per year. Below this level, the extra admin cost of a limited company (typically £1,000–£2,000/year in additional accountancy fees) outweighs the tax saving. Above this level, the gap grows significantly:
| Annual Profit | Ltd co advantage (approx) | After £1,500 admin cost |
|---|---|---|
| £25,000 | ~£500 | Sole trader better |
| £35,000 | ~£1,400 | Break-even |
| £50,000 | ~£2,500 | Ltd co better |
| £75,000 | ~£5,000 | Ltd co significantly better |
| £100,000 | ~£8,000 | Ltd co much better |
For your precise figures, use the sole trader vs limited company calculator above. For the full limited company tax breakdown, use our limited company tax calculator. For sole trader tax specifically, use our self-employed tax calculator.