One of the most common questions we hear from consultants at APH is a simple one. Am I paying more tax than I need to?
The answer, more often than not, is yes. And the reason is usually the same. They are operating under the wrong business structure for their income level.
At APH, we have been helping consultants across the UK get their tax set up correctly since 2010. This calculator gives you an instant estimate of your take home pay as a limited company consultant, with a comparison to sole trader explained below.
Try the calculator
Enter your figures below to estimate your take home pay as a limited company consultant. We’ll then show how this compares to operating as a sole trader.
The figures above are estimates based on 2025/26 tax rates. Your actual position will depend on your specific circumstances. If you want a precise calculation tailored to your situation, book a free consultation with APH Accountants here.
Consultant Tax Calculator
Enter your figures below to estimate your take home pay as a sole trader and as a limited company.
Sole Trader Take Home
Limited Company Take Home
Estimated Difference
Does not include student loans, pensions, other income, employer NIC complexities, IR35, VAT,
benefit-in-kind issues, or personal allowance tapering above £100,000.
What do these results mean?
The calculator focuses on the limited company scenario, which is where most tax planning opportunities exist for consultants.
As a limited company director, you typically pay yourself a combination of salary and dividends. The salary is often set at £12,570 to make use of your personal allowance, and the rest of your income is taken as dividends, which are taxed at a lower rate than income tax.
Example comparison (for illustration)
A consultant earning £70,000 may take home significantly more through a limited company structure than as a sole trader, depending on how income is structured.
As a sole trader, the same income would be subject to income tax and Class 4 National Insurance in full, which can result in a higher overall tax burden once you move beyond the basic rate threshold.
The difference in take home pay between the two structures can be substantial, particularly at higher income levels.
When does sole trader make sense?
Sole trader status is not always the wrong choice. It is simpler to set up, easier to run, and involves less administration.
For consultants in the early stages of their business, or those with lower profit levels, the tax saving from a limited company may not outweigh the additional costs and responsibilities that come with running one.
As a rough guide, a limited company tends to become worth considering once your consultancy profits are consistently above £30,000 to £35,000 per year.
Below that level, the extra accountancy fees, Companies House filing obligations, and administrative burden of a limited company may actually leave you worse off overall.
When does a limited company make sense?
Once your profits are consistently above that threshold, the tax efficiency of a limited company structure becomes increasingly significant.
The reasons are straightforward:
- Dividends are taxed at a lower rate than income
- Corporation tax on company profits is currently 19% for profits up to £50,000
- You have more flexibility in how and when you extract income from the business
- Pension contributions made by the company are a highly tax efficient way to reduce your overall tax bill
A limited company also gives you limited liability protection, meaning your personal assets are separate from your business in the event of a claim against you.
You can find out more about our accountants for limited companies service here.
What about IR35?
If you are considering a limited company structure, IR35 is something you cannot ignore.
IR35 is HMRC’s off-payroll working legislation. If HMRC determines that your working relationship with a client resembles employment rather than genuine self employment, you may be required to pay tax and National Insurance as if you were an employee. The tax efficiency of the limited company structure disappears entirely.
The key factors HMRC looks at include:
- How much control your client has over how and when you work
- Whether you can send a substitute to do the work in your place
- Whether you bear genuine financial risk
Getting your IR35 status right is not just a compliance issue. It can have a very significant impact on your take home income.
If you are unsure of your IR35 position, this is exactly the kind of question a specialist accountant can help you answer clearly. Find out more about our IT consultant accountancy services here.
What the calculator does not include
The calculator gives a useful estimate but it cannot account for everything.
It does not factor in:
- Employer National Insurance if you pay employees or directors above certain thresholds
- The additional accountancy costs of running a limited company
- Your personal circumstances such as other income sources
- Making Tax Digital obligations from April 2026
- Any income over £100,000 where the personal allowance begins to taper
For a complete picture of your tax position, there is no substitute for speaking to a specialist accountant who understands consultancy.
Not sure which structure is right for you?
The calculator gives you a starting point. What it cannot do is account for your specific situation, your plans for the business, or the tax planning opportunities that may be available to you.
“We are scaling our business and needed to find a company who understood the challenges we were faced with. After speaking to five other companies, APH stood out as the business that had the most knowledge and experience.”
— Paul Foster
At APH, we offer a free initial consultation with no obligation. You will speak to a real accountant who understands the consultant world, and come away with a clear picture of what structure works best for you and what you could be doing differently.