Incorporation
You could save tax every year by incorporating your business.
How it works:
You currently pay the following taxes on your business profits,
regardless of how much you withdraw from your business
- income tax
- Class 2 national insurance
- Class 4 national insurance
If you incorporate your business, you will pay the following taxes on profits extracted from your company
- income tax on salary
- income tax on dividend
and your company will pay
- corporation tax on profits
and you may incur Class 1 employee and employer national insurance contributions on your salary.
You will save tax and national insurance if your total taxes payable with a company
are less than the total taxes payable without a company.
Incorporation Calculator
Calculate your potential tax savings - at a click.
Incorporation Calculator
- shows you exactly how much of each tax you pay under each scenario, for any earnings level
- calculates the maximum dividend you could extract after corporation tax
- calculates any tax you may save by incorporating
- is unrivalled for accuracy and ease of use
Incorporation Calculator
- currently includes 2010/2011, 2011/2012 and 2012/2013 comparisons
- 2013/2014 and 2014/2015 predictions coming soon
and takes full account of
- personal allowance restriction where income exceeds £100,000
- additional 50% income tax and 42.5% dividend tax rates where taxable income exceeds £150,000
and from 1 April 2011
- £1,000 personal allowance increase
- basic rate income tax limit decrease
- corporation tax small profits rate 1% decrease
- corporation tax main rate 2% decrease
- all national insurance rates 1% increase
- all national insurance upper limits decrease
Save tax, save time, save effort.
Order Incorporation Calculator and let us do the calculations.
Tax rates and analysis
- all the rates, thresholds and allowances we take into account for your calculations
Screenshots
- 2010/2011 and 2011/2012 calculations and 2012/2013 predictions
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tax software for accountants and businesses since 1999