£150,000 revenue: Limited company costs around £4,783.55 per year vs sole trader

Comparison assumes £15,000.00 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£135,000.00

Income tax£46,953.00

Class 4 NI£3,956.60

Net take-home£84,090.40

Limited company (salary + dividends)

Director salary£12,570.00

Employer NI£1,135.50

Corporation tax£28,393.04

Dividend tax£24,417.46

Accountant fee£1,200.00

Net take-home£79,306.85

Headline difference

Annual difference: £-4,783.55 · Monthly difference: £-398.63

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

Self-employed on equivalent profit Employed equivalent salary Dividend tax on extracted profits Open full calculator

FAQs

Should I go limited at £150,000 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.