Start Sharp · Free Tax Checker
Sole Trader vs Limited Company — the tax difference
Enter your annual business profit and see the estimated 2026/27 tax + National Insurance under each structure, side by side. This shows the tax comparison — it doesn’t tell you which to choose.
Enter a figure between £15,000 and £250,000. Profit before any tax you pay yourself.
Estimated tax + NI
Estimated tax + NI
Under these assumptions, that’s the estimated tax + NI for each structure. That is the tax comparison — not the whole decision.
The assumptions behind this comparison
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Sole trader vs limited company tax calculator
This free sole trader vs limited company tax calculator shows, for the 2026/27 tax year, the estimated Income Tax, National Insurance, Corporation Tax and dividend tax under each structure at a given level of profit. Enter your annual business profit and it compares a sole trader with a single-director limited company side by side, using a fixed set of typical one-person-business assumptions for England, Wales and Northern Ireland.
It is a comparison, not a recommendation — it shows the tax difference, not which structure you should choose. The right choice depends on more than tax, including liability, admin, pensions and your plans for the business. For the full picture, read our guide on sole trader vs limited company and when to go limited, and see the current rates on GOV.UK.