Logo Jober.uk

Take-home calculator: sole trader, limited company or employee

Enter your revenue and costs and see three take-home figures side by side: as a sole trader after income tax and Class 4 NI, through a limited company paying a £12,570 salary and dividends, and as an employee whose salary costs the employer the same money.

The figures behind it · Class 4 NI (sole trader)
6 % to £50,270, then 2 %
Corporation tax
19 % to £50,000, 25 % above £250,000
Dividend tax
10.75 / 35.75 / 39.35 % after £500
Employer NI, for comparison
15 %

Your figures

What you invoice, before VAT.

Deductible expenses: software, accountant, equipment, travel, insurance.

How the three take-home figures are calculated

Same revenue, three routes: tax on the profit, tax on salary plus dividends, or a salary inside an employer's budget.

Sole trader
Revenue less costs is the profit. Income tax applies with the £12,570 allowance and the 20 / 40 / 45 % bands, plus Class 4 National Insurance at 6 % between £12,570 and £50,270 and 2 % above. Class 2 has been abolished for most traders.
Limited company
The company pays the director £12,570 (no employee NI; employer NI of 15 % above £5,000, with no Employment Allowance for a sole director) and corporation tax on the rest at 19 % up to £50,000, 25 % above £250,000 and marginal relief between. The profit after tax goes out as dividends, taxed at 10.75 % in the basic band, 35.75 % and 39.35 % above (2026/27), after the £500 allowance. IR35, pension contributions and accountancy fees are not modelled.
Employee
The gross salary whose total cost to an employer (15 % employer NI above £5,000) equals your profit, and the take-home it leaves. That is the fair comparison when a client offers a contract instead of a job.
Source and rules

HMRC: self-employed National Insurance rates and income tax rates 2026 to 2027

Rule set 2026/27, last checked on October 12, 2026.

The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.

Frequently asked questions

Sole trader or limited company on £55,000 of profit?

Close in 2026/27: about £43,200 as a sole trader (£9,432 tax, £2,357 Class 4 NI) and about £42,500 through a company (£1,136 employer NI, £7,846 corporation tax, £3,542 dividend tax). The company pulls ahead when profit is left in the business or paid into a pension.

Why is the self-employed net higher than the employee net?

Because there is no employer National Insurance and no auto-enrolment pension, and Class 4 NI is lower than Class 1. You carry the holiday, sick pay and pension yourself.

Does the calculator include VAT, IR35 or payments on account?

No. Enter revenue excluding VAT. Inside IR35 a contract is taxed like employment, so use the employee row. Payments on account change when you pay, not how much.

What next?

Know what you are worth? Browse the latest jobs and compare offers with your figures in hand.

Browse jobs

Other calculators

All calculators