Sole Trader Or Limited Company, Which Provides The Highest Returns?
If you are a new business, we hope you will have read the DNS small business start up kit. If you are an existing business operating as a sole trader, we hope this table will help you see the benefits of working through a limited company.
Below are the average returns you can expect to see working as a sole trader or through a limited company.
| Profit £ | Ltd company tax £ | Sole trader tax £ |
|---|---|---|
| 20,000 | 4,200 | 5,600 |
| 30,000 | 6,300 | 8,400 |
| 40,000 | 8,400 | 11,200 |
| 50,000 | 10,500 | 14,928 |
| 60,000 | 12,600 | 19,029 |
| 70,000 | 14,700 | 23,129 |