UK Sole Trader vs Limited Company Tax Calculator (2026/27)

Before you change your business structure — understand the numbers.

If you're a UK freelancer, consultant, contractor or creator trying to decide whether to stay a Sole Trader or set up a Limited Company, the honest answer is: it depends on your numbers. This calculator gives you those numbers in minutes, not hours.

Enter your revenue, expenses, salary and tax residence, and the workbook instantly compares your estimated take-home under both structures for the 2026/27 UK tax year — Income Tax, Class 4 National Insurance, Corporation Tax, Employer/Employee NIC and Dividend Tax, all calculated side by side.

What you get:

• Results Dashboard — Sole Trader vs Limited Company take-home, the estimated difference, and a plain-English explanation of what it means for you
• Break-Even Analysis — see how the comparison shifts across 13 profit levels from £20,000 to £150,000, with a chart showing exactly where (or whether) the two structures cross over
• Scenario Planner — model a Conservative, Expected, and Strong Year outcome side by side, so you're not betting the decision on one uncertain revenue guess
• Full England/Wales/NI and Scotland support — correct Income Tax bands for wherever you're based, with dividend tax handled UK-wide
• Transparent assumptions — every rate and threshold is documented on its own Sources sheet with the official HMRC/GOV.UK reference, so you're never guessing what's built in

Also included: an 11-page PDF User Guide walking through every sheet, a five-minute quick-start, and a plain-English explanation of what the calculator does and doesn't cover.

Built for straightforward planning scenarios — one main business, UK resident, no complex reliefs. It won't model IR35, capital gains, or multi-company structures, and it's not personal tax advice. It's built to give you a clear, evidence-based starting point for the conversation with your accountant.

❓FAQ

Is this a tax calculator? It's an illustrative tax comparison and planning calculator based on the figures and assumptions you enter.

Does it tell me whether I should become a Limited Company? It helps you compare estimated financial outcomes under both structures — it doesn't make the decision for you. The workbook explicitly flags when the difference is small enough that non-tax factors (admin, accountancy costs, legal responsibilities) may matter more than the tax result.

Does it use 2026/27 tax rates? Yes — Income Tax, Scottish bands, Class 4 NIC, Corporation Tax, Dividend Tax, Employer/Employee NIC are all current for the 2026/27 tax year (6 April 2026 – 5 April 2027), sourced from HMRC/GOV.UK.

Can I use it if I live in Scotland? Yes — select Scotland as your Tax Residence and the workbook applies the correct Scottish Income Tax bands (Starter, Basic, Intermediate, Higher, Advanced, Top).

Does it include Corporation Tax, dividend tax, and National Insurance? Yes, all of it — including Corporation Tax marginal relief between £50,000 and £250,000 of company profit, and dividend tax correctly stacked on top of salary.

Does it include company running costs? Yes — enter your own estimated accountancy, payroll, filing, and software costs, and the workbook shows both a tax-only comparison and a comparison after those costs.

Is it Excel or Google Sheets? Built and tested for Microsoft Excel. Google Sheets compatibility hasn't been separately tested and isn't guaranteed.

Is it tax advice? No. This is an illustrative planning tool, not personal tax, legal, or financial advice. Always verify current HMRC guidance and speak with a qualified accountant before changing your business structure.

Can I use it for a complex company situation? It's designed for straightforward planning scenarios — one main business, UK resident, no unusual reliefs. It doesn't model IR35, capital gains, pensions, the Child Benefit charge, or multiple businesses.

Can I get a refund? Because this is a digital product that is delivered immediately after purchase, refunds are generally not available once the files have been accessed or downloaded. If you experience a technical problem with the workbook or receive an incorrect or incomplete file, please contact us so we can help resolve the issue.