call-icon0207 608 5500
Login
0
View Packages
 

Self employed or limited company?

By registering as a limited company, you could save:

1,717.36

Show me the calculations

View our Limited Company formation packages

Or register as s Sole Trader with our Sole Trader Start Up pack

This calculator is brought to you by TaxAssist Accountants: The Accountancy and Tax Service for Small Business

TaxAssist Accountants

We’ve worked in partnership with TaxAssist Accountants for a number of years, providing small and medium sized businesses with local accountancy expertise. To contact a TaxAssist small business advisor for more information, please call 0800 0523 555 or visit their website via www.taxassist.co.uk.

Disclaimer

Tax and NI rates - The company tax estimator uses the 2017/18 income tax, corporation tax and National Insurance rates.

Year end - The company tax estimator will only calculate the liabilities, net income and overall tax saving for the 2017/18 tax year. It cannot calculate the liabilities for a period of less than twelve months, more than twelve months or for a year end that is not coterminous with the tax year.

Limitations - This workbook is not equipped to deal with:

  • Profit share ratios/shareholdings that are not equally split
  • A salary that is in excess of the Personal Allowance
  • Directors that are not shareholders
  • Taxable income or any other circumstances outside of the company that might be pertinent to their tax affairs, such as Gift Aid contributions
  • Scottish taxpayers
  • Contracts that may fall within the scope of IR35

Accuracy - The results provided by the company tax estimator are only as accurate as the information provided by you. The results generated by the company tax estimator should only be deemed suitable for general guidance only, and should not replace or be deemed to constitute professional advice.

Assumptions - The company tax estimator indicates the 'headline' tax saving, there are many other considerations:

  1. Calculations are based on a salary equivalent to the primary threshold for National Insurance £8,424 (2018/19) or lower if profits are below this level
  2. Any other income is ignored
  3. Assumes the £5,000 dividend allowance is available
  4. Based on one company only - i.e. no associated companies
  5. Based on 2018/19 tax rates and the financial year 1 April - 31 March
  6. Based on a sole proprietor/single director
  7. Assumes payment of full rates of NI for both Class 1 and Class 4
  8. Assumes all available funds withdrawn from the company
  9. Ignores Employers NI allowance - first £3,000 Ers NI not payable

Action - If the results provided by the company tax estimator show incorporation would be beneficial, it is important that you contact us before implementation. If you take, or do not take action as a result of using the company tax estimator before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Effort has been taken to ensure the accuracy of the company tax estimator. The company tax estimator is regularly reviewed and is subject to alteration from time to time. However, as legislation can change, we advise you seek professional advice on your personal situation. For more information on incorporation and tax implications, we recommend speaking with an accountant.