Should you be a Using a Company Tax Calculator

This calculator provides you with some instant guidance on the implications of running your business as a sole trader or via a company. In particular it allows you to compare the income tax, national insurance and corporation tax implications. Simply enter your profits into the calculator and let the software do the work.

It works in three ways.

The first page compares the income tax if you're a sole trader with the corporation tax payable if you carry out your trade via a company. This would be useful to compare a sole trader with a company that was planning to reinvest all profits.

The second page looks at the NIC position and compares the NIC payable if you trade as a sole trader or use a company (and extract cash as a salary).

The third page brings these two aspects together and compares the income tax and NIC payable if you're a sole trader with the income tax, corporation tax and NIC payable if you use a company (assuming you take a small salary from the company with the rest of the cash extracted as dividends).

To access the 'Should you be using a company Tax Calculator' click here