Comparison assumes £7,500.00 annual expenses (10% default), £1,200.00 accountant fees for limited company, and 2025/26 UK tax assumptions.
Updated for 2025/26 · Reviewed by James Whitfield · Methodology and assumptions
Annual difference: £-639.31 · Monthly difference: £-53.28
Outcomes are close. Decide based on admin effort, flexibility and medium-term growth.
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.
It depends on your profit margin, admin tolerance and long-term plans. This page compares both routes under matched assumptions.
Typical extra costs include accounting fees, compliance filing, payroll setup and admin time. This estimate includes a configurable accountant fee.
Dividend tax applies after the dividend allowance, then by UK dividend tax bands. This page shows dividend tax separately from corporation tax.
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