Is a limited company worth it? Compare the tax you pay as a sole trader with salary plus dividends through a company, for 2026/27.
Sole trader
Income Tax–
Class 4 NI–
You keep–
Limited company (salary + dividends)
Employer NI on salary–
Corporation Tax–
Your Income Tax (salary + dividends)–
You keep–
–
Assumptions: Tax year 2026/27, rates for England, Wales and NI · Corporation Tax 19% up to £50,000, 25% above £250,000, marginal relief in between · dividends 10.75% / 35.75% / 39.35%, £500 allowance · employer NI 15% above £5,000, no Employment Allowance (not available to companies whose only employee is a director) · all remaining profit paid as dividends · excludes accountancy and admin costs of running a company
An estimate for general information only. Rates checked on 8 October 2026 against GOV.UK. Tax rules change and every business is different — for advice on your own situation, speak to an accountant.
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