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You are in: Home » Resources » Tax Centre » Tax Calculators » Incorporation

Incorporation Calculator

Incorporation Calculator

Use this calculator to work out if you would be better off by running your business through a Limited Company.

ENTRIES ARE BASED ON ONE PARTNER OR SOLE TRADER...

Annual Taxable Profits of Sole Trader or one Partner (enter below £100k)£

Number of partners (enter 1 for sole trader)

Salary to be taken from company help£

Optional Entries to get a more accurate result

Private expenses (leave blank if don't know) help£

Benefits in kind help | calculator£

No. of Associated Companies help £

Scottish Taxpayer?

RESULTS IF A SOLE TRADER OR PARTNER

Profits£

Income Tax£

Class 4 National Insurance£

Class 2 National Insurance£

Net Income£

RESULTS IF A LIMITED COMPANY

Profits£

Salary£

Employers NI on salary and benefits£

Corporation Tax£

Available for Dividend£

Income Tax on salary, benefits and dividends£

Employees NI£

Net Income£

Extra Income By Incorporating£

Extra savings possible help.£

TOTAL POSSIBLE SAVINGS£

Notes and assumptions

"It is assumed all partners share equally in the profits, are liable to pay NI and would not be contracted out, have the same tax position and there is no other taxable income or tax deductible allowances apart from the basic personal allowance ( should be below £100k ). This calculator can only give a guide to potential savings but cannot cater for all situations. You must consult an accountant for specific advice in your own circumstances before taking any action. There are also may other factors to take into account before deciding to incorporate, although tax savings are often an important consideration. "