Sole trader vs limited company
Should an Influencer Set Up a Limited Company?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
| Corporation Tax | 19% up to £50,000, 25% over £250,000 |
|---|---|
| Dividend allowance | £500 |
| Higher rate starts | £50,270 |
How it works
A company is a separate legal entity. Profits are taxed in the company, then you pay personal tax on what you take out.
Savings come from mixing a small salary with dividends and from leaving profits in the company.
You get extra filings: company accounts, Corporation Tax, confirmation statements and usually payroll.
Other things to weigh up
Company money is not your money. You take it out through salary, dividends or pension contributions, each with its own tax treatment.
Mortgage lenders often want two years of company accounts, so timing can matter if you are planning to buy a home.
Brand contracts, platform accounts and payouts should move into the company name, or HMRC may treat the income as still yours personally. We help plan the move.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, the saving depends more on what you leave in the company than on headline tax rates.
Example
Zara has £80,000 profit and needs £45,000 to live on. A company lets her take a small salary and dividends and leave the rest in the company, which can reduce total tax compared with sole trader. Our calculator shows her both outcomes.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Compare both with our calculator.
- Consider what you need to take out.
- Check mortgage and admin plans.
- Book a free call before incorporating.
Want us to handle this for you? Our Limited Company package covers company accounts, Corporation Tax and your salary and dividend plan. See also our limited company accounts for influencers and our page for accountants for YouTubers.
Common mistakes
- 1Incorporating too early.
- 2Taking all profit out anyway.
- 3Not moving brand contracts into the company.
From our client work: We often see creators incorporate for status, then take out every penny — losing most of the benefit.
Frequently asked questions
Related questions
Official sources
Not sure where you stand?
Book a free 15-minute call with a Chartered Accountant who works with creators every day.
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This is general guidance for UK tax residents for the 2026/27 tax year, not personal advice. Speak to us about your situation.
