Structure
Same profit. Two legal persons.
Incorporating is not a tax cheat code. Compare the shape, then talk to us before you pay Companies House.
£60,000
Sole trader: income tax + Class 4 NIC. Limited: £12,570 salary, 19% CT on the rest, then dividends. Employers’ NIC, VAT and accountancy fees are omitted.
Illustrative take-home
Sole trader
£46,111
Tax/NIC £13,889
Limited company
£47,616
CT + personal tax £12,384
On these numbers the company keeps more at the end, before extra filings and a second Self Assessment.
Bands are illustrative, not this year’s official table, and not advice.
Countplus Accounting, since 2019
Want this run on your actual numbers?
A monthly number in a minute, or a conversation with the person who would do the work.
Get a quote, or call the desk on 01925 670289, Monday to Friday, 9 to 5. Write before 4pm and a named person answers the same day.