Planning calculators
All figures use 2026/27 rates and thresholds. Indicative only — each calculator lists its assumptions.
Assumptions
£80,000
£
Before any owner remuneration.
£5,000
£
All remaining post-tax profit is paid out as dividends.
£0
£
Rent, employment or pension income taxed before the business.
£0
£
Personal contribution for a sole trader; employer contribution for the company.
Scottish rates apply to salary and trading profit; dividends always use UK-wide rates.
At £80,000 of profit, staying a sole trader leaves about £1,683 more in the owner's pocket each year.
Sole trader net cash
£57,711
Limited company net cash
£56,028
Difference
−£1,683
in favour of staying a sole trader
Net cash across profit levels
On these assumptions sole trader stays ahead across the whole range — try a higher director's salary or a pension contribution.
Where the money goes
Sole trader
- Trading profit
- £80,000
- Income tax
- −£19,432
- Class 4 NIC
- −£2,857
- Net cash to owner
- £57,711
Limited company
- Trading profit
- £80,000
- Salary drawn
- £5,000
- Dividends drawn
- £58,875
- Employer NIC
- £0
- Corporation tax
- −£16,125
- Employee NIC
- £0
- Income tax on salary & dividends
- −£7,847
- Net cash to owner
- £56,028