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From sole trader
to limited company

Going limited can cut your tax bill and protect your personal assets. We tell you honestly whether it is worth it for you, then handle the whole move.

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The same profit, two very different tax bills

Which side wins depends on how much you draw. We model your real numbers, not a rule of thumb.

Limited company

Trading as a company

  • Corporation tax at 19% to 25% on profits
  • Salary and dividend planning cuts personal tax
  • Leave profit in the company in high-earning years
  • Personal assets protected by limited liability
  • More admin: accounts, filings, payroll
Usually wins once profits pass the point where you are not drawing everything you earn.
Sole trader

Staying self-employed

  • Simple: one tax return, minimal admin
  • All profit taxed as your income up to 47% combined
  • No liability protection for your personal assets
  • No option to retain profits at lower rates
  • Cheaper to run at small profit levels
Often right below roughly £30,000 profit or when simplicity matters more than savings.

Want the answer for your numbers, right now?

Our free salary and dividend calculator shows what a limited company structure would leave in your pocket. Two inputs, instant answer, no email address required.

The move, handled end to end

£175 one-offFormation and registrations when you join a monthly plan
Both returnsYour final sole trader return and first company year covered
Right treatmentBusiness assets transferred with the correct tax handling

Incorporation questions, answered

More questions? See our full FAQ for answers on tax and company structure.

At what profit level does a limited company save tax?

There is no universal threshold. Savings depend on how much of the profit you actually draw and your other income. Try our corporation tax calculator and salary and dividend calculator to see your own numbers, or we model them for you on a free call.

What happens to my business name and contracts?

You can usually register the company under your trading name, and we will guide you through novating contracts, updating insurance and telling customers and suppliers.

Do I need a business bank account?

Yes. A limited company is legally separate, so it needs its own account. We can point you to accounts that connect cleanly with cloud bookkeeping.

Can I switch mid tax year?

Yes, and it is common. We prepare your closing sole trader return and open the company’s first period so nothing falls between the two.

Find out what going limited saves you

Book a free call and get an honest, numbers-based answer, plus a fixed quote for handling the whole move.

Book a Free Consultation