Business structure

Sole trader or limited company? The honest answer

Published 20/02/2026

Incorporating can reduce tax once profits reach a certain level, but the crossover point moves with rates and with how much you draw from the business.

There is a real admin cost: statutory accounts, a corporation tax return, a director's tax return, payroll and Companies House filings.

The right answer depends on profit, plans for growth, and whether limited liability matters for the work you do. We model both before you commit.

This article is general information, not advice for your specific circumstances. Book a consultation for tailored guidance.

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