myQuarterly — Sole trader vs limited company

myQuarterly · pay yourself

Sole trader or limited company?

Set what your business makes and what you actually want in your pocket. We'll show the tax each way — and where the money quietly does more work for you. 2026/27 figures, England & Wales.

Business profit
After business expenses — the bit before you pay yourself.
£80,000
£0£150k£300k
What you want to take home
Your target for personal spending money this year.
£
£0£150k£300k

The verdict

—

£0
less tax this year

Sole trader

Taxed on the whole profit — drawings don't change the bill.

£0
total tax & NI this year
Take-home£0
Effective tax rate0%
See the breakdown
Income tax£0
Class 4 NI£0

Limited company

£12,570 salary, the rest as dividends — surplus can stay put.

£0
total tax this year (company + personal)
Take-home£0
Effective tax rate0%
See the breakdown
Corporation tax£0
Dividend tax£0
Employer's NI£0
Salary drawn£12,570

The honest answer is always "it depends on your numbers" — which is exactly the bit we're here for. Fancy a proper look at yours?

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A guide, not advice — and not a substitute for running your real figures. Assumes 2026/27 rates for England & Wales, one director on a £12,570 salary, no other income, pension or student loan, and no associated companies. Money left in the company has only met corporation tax so far — you'll pay dividend tax later if you draw it out. Scottish taxpayers have different bands, so shout if you need that version.