18/10/2026
Does earning £100k mean you should switch to a limited company?
The answer depends on what you want to do with the profits.
If you withdraw everything each year, a limited company could leave you with less take-home pay than operating as a sole trader.
The planning opportunities come from having flexibility:
✅ Retaining profits for future investment
✅ Making employer pension contributions
✅ Choosing when to take dividends
✅ Spreading withdrawals across tax years
The right structure depends on how much you need personally and your plans for the business.
Comment “Tax” and I’ll send you some more tips to help reduce your tax bill. 📩