Sole Trader vs Limited Company

Many accountants still rely on rough benchmarks (e.g. ‘over £80k turnover = incorporate’). 

But incorporation decisions should be based on real numbers, not rules of thumb. Tax Torch lets you model both options—accurately.

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1. Enter current income as a sole trader.
2. Duplicate the scenario and select "Limited Company" setup.
3. Add a reasonable salary/dividend combo under the new scenario.
4. Include other income sources, child benefit, student loan, etc.
5. Compare the total tax, take-home, and any benefits lost/gained.

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• When clients near VAT threshold or profit exceeds £40k+
• When they mention scaling, hiring, or reinvestment plans
• When restructuring for future sale or tax efficiency

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