Limited Company vs Sole Trader
Compare the net income you'd take home as a sole trader versus operating through a limited company, including corporation tax, salary, dividend tax and the option to retain profit.
Daten geprüft · Juli 2026
Does a limited company always give more net income?
No — at lower profit levels the extra administrative burden and dividend tax on full extraction can make sole trader status simpler and just as tax-efficient; the gap generally widens in the company's favour as profit rises.
Quelle: HMRC — Income Tax rates and Personal Allowances (gov.uk/income-tax-rates); Tax on dividends (gov.uk/tax-on-dividends); Corporation Tax rates, 2025/26. · aktualisiert 2026
🧮
Fuellen Sie die Felder aus, um Ergebnisse in Echtzeit zu sehen
Gefaellt Ihnen dieser Rechner?
Erstellen Sie ein kostenloses Konto, um Ihre Berechnungen zu speichern, auf den Verlauf zuzugreifen und als PDF zu exportieren. Upgraden Sie auf Pro fuer alle 319 Rechner.
Eine Frage zu diesem Ergebnis?
Stellen Sie sie Solva, dem KI-Finanzberater von ActioFin — Antworten mit Quellen aus offiziellen Texten.
5 kostenlose Fragen pro Tag mit einem kostenlosen Konto
Alles über Limited Company vs Sole Trader
📋Überblick+
As a sole trader, all profit is taxed as your income via income tax and Class 4 NIC. Through a limited company, profit is first taxed at corporation tax rates (19-25%), then you extract a mix of a modest salary (deductible, low NIC at this level) and dividends (taxed separately at lower dividend rates), optionally leaving some profit retained in the company rather than extracted at all. The comparison shows which structure leaves you with more net income for the same underlying profit.
💡 Bewährte Vorgehensweisen
- The limited company route usually wins at higher profit levels precisely because retained or deferred profit avoids personal tax until it's actually extracted.
- A small director's salary around the NIC threshold is often the most tax-efficient extraction method — it's a deductible company expense with little to no NIC.
- The comparison ignores administrative costs (accountancy, filing) which are typically higher for a limited company — factor those in separately.
🔢 Konkretes Beispiel
£60,000 annual profit, £12,570 director's salary, no profit retained: compares full sole-trader income tax and Class 4 NIC against corporation tax plus salary and dividend tax under the limited-company route.
📖Anleitung+
So verwenden Sie diesen Rechner
- 1
Enter your annual profit before any salary or extraction.
- 2
Enter the director's salary you'd take in the limited-company scenario.
- 3
Enter any profit you'd choose to leave in the company rather than extract as dividends.
- 4
Compare the net income and total tax under each structure.
📚Glossar+
- Dividend tax
- Tax charged on dividends received from a company, at lower rates than income tax (8.75%/33.75%/39.35% for 2025/26) but with only a small £500 dividend allowance.
- Retained profit
- Profit left inside the limited company rather than extracted as salary or dividends — taxed only at corporation tax rates until it's eventually paid out or the company is sold.
ℹ️Quellen & Aktualisierung+
Letzte Datenaktualisierung
7. Juli 2026
Quellen und Referenzen
HMRC — Income Tax rates and Personal Allowances (gov.uk/income-tax-rates); Tax on dividends (gov.uk/tax-on-dividends); Corporation Tax rates, 2025/26.
Die Daten dieses Rechners werden regelmäßig aktualisiert, um die neuesten offiziellen Sätze abzubilden. Im Zweifel konsultieren Sie die oben genannten offiziellen Quellen.
FAQ — Limited Company vs Sole Trader
Does a limited company always give more net income?+
No — at lower profit levels the extra administrative burden and dividend tax on full extraction can make sole trader status simpler and just as tax-efficient; the gap generally widens in the company's favour as profit rises.
Can I mix salary and dividends freely?+
Yes, within reason — but salary above small amounts attracts employer and employee NIC, so most owner-directors keep salary low and rely on dividends for the bulk of extraction.