Sole Trader vs Limited Company
Run the numbers in seconds. Compare total tax, take-home and pension across both structures — then export a branded report for the client.
Everything the conversation needs
Built around the questions clients actually ask when deciding to incorporate.
Income tax, NIC & dividend tax
Models personal allowance taper, basic-rate band extension and the 2026/27 dividend rates automatically.
Corporation tax with marginal relief
Applies 19% / 25% with the 3/200 marginal relief on the company profit before dividend extraction.
Pensions on both sides
Employer pension contributions for the company and net contributions with 25% relief for the sole trader.
Branded PDF exports
Hand the client a polished side-by-side report with your firm's logo and the verdict on the front page.
What you can model
- Personal allowance taper above £100k
- Class 4 NIC for self-employed
- Employee & employer NIC (15% above £5k ST)
- Corporation tax with marginal relief
- Dividend allowance & 10.75% / 35.75% / 39.35%
- Sole trader pension with basic-rate extension
- Employer pension contributions (Ltd)
- Retained profit in the company
A quick tour
Three short steps from profit inputs to a clear incorporation recommendation.
Enter profits and drawings
Start with trading profit, salary, dividends and region so both structures are compared on the same footing.
- Trading profit input
- Director salary field
- Dividend field
- England & Wales or Scotland toggle
See both structures side by side
The compare view puts sole trader and limited company tax stacks next to each other so the difference is obvious at a glance.
- Two-column comparison
- Separate tax components shown
- Total burden headline for each route
- Savings badge in the middle
Deliver the recommendation
Finish with a clear winner, a concise breakdown and a branded PDF export for the client meeting or file.
- Recommendation headline
- Corporation tax, dividend tax and NI lines
- Net to shareholder figure
- One-click PDF export
Ready to settle the question?
Sole Trader vs Ltd is included in every NRD Calculators plan.
Frequently asked questions
Quick answers on rates, rules and what's included.