Sole trader vs limited company tax calculator
Compare the UK tax you would pay as a sole trader vs through a limited company at your profit level. Includes dividend tax, salary and corp tax.
Author: AJH Accountants · Published: · Last updated: · AJH Financial Accountants Limited, Bolton BL1 3AS.
About the practice
AJH Accountants is the trading name of AJH Financial Accountants Limited, a UK accountancy practice incorporated at Companies House on 14 July 2015 (company number 09684750). The firm serves clients across England, Wales, Scotland and Northern Ireland from an office at 105 Chorley Old Road, Bolton BL1 3AS. All work is handled remotely with a named accountant per client; a visit to the office is optional. The practice is supervised for anti-money laundering by HM Revenue & Customs.
Fees
Prices are fixed and agreed in writing before any work begins. Sole trader self-assessment starts at £15 pm. Limited company accounting with payroll and VAT starts at £75 pm. Landlord accounting starts at £20 pm. Bookkeeping at £45 pm. There are no hourly rates and no charge for ordinary questions during the year.
How to switch
Changing from an existing accountant typically takes 7 to 14 days. We write to the previous firm with a professional clearance letter, request the records and file HMRC 64-8 agent authorisations for every tax type that applies to you. There is no cost for the switch itself. Mid-year switches are routine and do not require waiting for a year end.
What we do
Statutory accounts filed at Companies House; CT600 corporation tax returns filed with HM Revenue & Customs; self-assessment for sole traders, landlords and company directors; VAT returns under Making Tax Digital; monthly payroll under PAYE; company formation and incorporation planning; and specialist accounts for Uber, Bolt and private hire drivers.
Common questions
At what profit should I switch from sole trader to limited company?
A rough rule is £30,000-£50,000 of annual profit, but it depends on how much profit you need to extract, whether you make pension contributions, and your other income. The calculator on this page gives you a precise answer for your situation.
What are the admin costs of a limited company?
Expect to pay £75-£150 per month for a basic limited company accountancy service (vs £15-£30 for a sole trader), plus Companies House filing fees. There is more admin — statutory accounts, CT600, confirmation statement, payroll — but we handle all of it.
Can I take money out of a limited company whenever I want?
Yes, as salary (taxed through PAYE) or dividends (if the company has distributable reserves), or as a loan up to £10,000 interest-free. Larger loans trigger a tax charge and benefit-in-kind. We help structure your extraction tax-efficiently.