Ashcroft & PartnersSigned in · Eleanor Ashcroft FCA
Ledger Terminal
The Advisor’s Workbench — conversation tools for chartered accountants
Date
Wednesday, 22 April 2026
Tax year
Advisor
Eleanor Ashcroft
Loaded clientMeridian Joinery LtdLtdProfit £142.0k · Turnover £680.0k · Staff 6
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SessionOffline
Simulator № 01

Incorporation decision

Sole trader vs Ltd at this profit level — which hands more to the owner?

Inputs
Annual profit£142,000
£20,000£400,000
Amount drawn (personal)£60,000
£12,570£142,000

Ltd salary fixed at £12,570 (PA); the rest of “drawn” is taken as dividend.

Sole trader
£87,800
take-home · ETR 38.2%
Limited company
£53,586
take-home · ETR 26.6%
AdvantageSole trader +£34,214
Take-home
CT
Retained
empty