£100,000 revenue: Limited company costs around £4,224.15 per year vs sole trader

Comparison assumes £10,000.00 annual expenses (10% default), £1,200.00 accountant fees for limited company, and 2026/27 UK tax assumptions.

Updated for 2026/27 · Reviewed by James Whitfield · Methodology and assumptions

Sole trader

Profit£90,000.00

Income tax£23,432.00

Class 4 NI£3,056.60

Net take-home£63,511.40

Limited company (salary + dividends)

Director salary£12,570.00

Employer NI£1,135.50

Corporation tax£16,468.04

Dividend tax£11,909.21

Accountant fee£1,200.00

Net take-home£59,287.25

Headline difference

Annual difference: £-4,224.15 · Monthly difference: £-352.01

Sole trader route currently looks stronger on net take-home under these assumptions.

At what revenue does Ltd become worth it?

In many cases the crossover starts around £30k–£35k profit after expenses, once corporation/dividend tax efficiency outweighs accounting and admin costs. The exact point depends on margin, extraction strategy and compliance overhead.

Useful next links

£85,000 revenue £90,000 revenue Self-employed on equivalent profit Employed equivalent salary Dividend tax on extracted profits Open full calculator

FAQs

Should I go limited at £100,000 revenue?

It depends on your profit margin, admin tolerance and long-term plans. This page compares both routes under matched assumptions.

What are the hidden costs of a limited company?

Typical extra costs include accounting fees, compliance filing, payroll setup and admin time. This estimate includes a configurable accountant fee.

How are dividends taxed?

Dividend tax applies after the dividend allowance, then by UK dividend tax bands. This page shows dividend tax separately from corporation tax.