Entity Structure Optimiser
Calculate the most tax-efficient structure for your business. Compare Limited Company, Sole Trader, and Partnership setups in real-time based on 2026/27 rates.
Business Profile
£100,000
£40,000
£32,000
Total amount all owner(s) want to take out personally each year.
£0
E.g. rental income, salary from another job.
1
Recommended Structure
Sole Trader
At your current profit and extraction levels, the tax savings of a Limited Company don't outweigh the benefits of your current structure. A Sole Trader remains the most tax-efficient choice.
Detailed Tax Comparison
| Breakdown | Sole Trader | Partnership / LLP | Limited Company |
|---|---|---|---|
| Corporation Tax | - | - | £4,996 |
| Salary / Drawings | £40,000 | £40,000 | £12,570 |
| Dividends | - | - | £19,430 |
| Income Tax | £5,486 | £5,486 | £0 |
| Employee National Insurance | £1,646 | £1,646 | £0 |
| Employer National Insurance | - | - | £1,136 |
| Dividend Tax | - | - | £2,035 |
| Total Tax & NI | £7,132 | £7,132 | £8,166 |
| Effective Tax Rate | 17.8% | 17.8% | 20.4% |
| Net Take-Home | £32,868 | £32,868 | £29,965 |
*Based on 2026/27 rates, single or multiple owners as selected, England/Wales/NI tax bands (Scotland rates available on request). This is an estimate only — not formal tax advice. Always consult a qualified accountant before making changes.