tax calculator
Helping small businesses to choose the most effective tax arrangements
Tax Comparison Calculator
Choose between sole-trader, Limited company or shared Limited company
Please, note that this table is not an accurate accountant's tool therefore it only gives a comparison of 3 the most common tax arrangements for small businesses in 2019/2020.
Results
| Sole-trader | Limited company | Limited company shared | ||
| Director 100% | Partner 0% | |||
Corporation tax |
— | £20,140.00 | £20,140.00 | |
| Income tax | £33,500.00 | £0.00 | £0.00 | £0.00 |
| Dividend tax | — | £24,050.00 | £24,050.00 | £0.00 |
| NINO Class 2 | £156.00 | — | — | — |
| NINO Class 4 | £4,767.62 | — | — | — |
| NINO Class 1 Employer | — | £50.78 | £50.78 | £0.00 |
| NINO Class 1 Employee | — | £44.16 | £44.16 | £0.00 |
| Total tax | £38,423.62 | £44,284.94 | £44,284.94 | |
| Total take home from £115,000.00 | £76,576.38 | £70,715.06 | £70,715.06 | |
| Money remained in business | — | £0.00 | £0.00 | |
Based on tax figures for 2018/2019 year in the UK
- Income tax basic rate - 20%
- Tax free income - £12,500.00
- Income tax higher rate - 40%
- Higher income threshold - £50,000.00
- Upper income threshold - £150,000.00
- Income tax upper rate - 45%
- NINO Class 2 (per week) - £3.00
- NINO Class 4 low rate - 9%
- NINO Class 4 lower income threshold - £8,632.00
- NINO Class 4 high rate - 2%
- NINO Class 4 high income threshold - £46,350.00
- NINO Class 1 primary (employee's) rate - 12%
- NINO Class 1 primary (employee's) income threshold - £8,632.00
- NINO Class 1 upper rate - 2%
- NINO Class 1 upper income threshold - £46,356.00
- NINO Class 1 secondary (employer's) rate - 13.8%
- NINO Class 1 secondary (employer's) income threshold - £8,632.00
- Corporation tax rate - 19%
- Tax free dividend threshold - £2,000.00
- Dividend tax for basic income - 7.5%
- Dividend tax for higher income - 32.5%
- Dividend tax for upper income - 38.1%
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