Free calculator · UK 2026/27
Solicitor Take-Home Calculator
Whether you are a salaried partner, locum solicitor, or freelance consultant, your structure affects your annual net take-home more than most people realise. Enter your annual profit or day rate to see how sole trader, partnership/LLP and limited company compare on a like-for-like basis.
Solicitor Take-Home Calculator
Whether you are a salaried partner, locum solicitor, or freelance consultant, your structure affects your annual net take-home more than most people realise. Enter your annual profit or day rate to see how sole trader, partnership/LLP and limited company compare on a like-for-like basis.
Switch between entering a known annual profit or a day rate with days worked
Annual pre-extraction profit (used when input mode is Annual profit)
Your charge-out day rate (used when input mode is Day rate)
Billable days in the year (used when input mode is Day rate)
Annual pension contribution (reduces taxable income)
UK 2026/27 (FA 2026 dividend rates from 6 April 2026: 10.75% basic / 35.75% higher / 39.35% additional). Partnership and LLP are tax-transparent (identical result). Ltd assumes £12,570 salary + dividend, £2,500 admin cost, no Employment Allowance.
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How this calculator works
For sole trader and partnership/LLP, profit is taxed as personal income (income tax at 20%/40%/45% plus Class 4 NI at 6%/2%). Both structures are tax-transparent so they produce the same result.
For a limited company, the calculation applies corporation tax on profits (19% small/25% main rate), employer NI on the minimum salary (£12,570), then dividend tax on the remaining distributable profit. A fixed £2,500 annual admin cost is included.
The headline tax efficiency of Ltd over partnership/LLP has narrowed at 2026/27 rates following the FA 2026 dividend rise (basic rate 10.75%, higher rate 35.75%). The real reasons to incorporate (retained earnings, multiple shareholders, future share sale) usually matter more than the marginal tax saving.
Locum and consultant example: a solicitor billing £350/day for 180 days earns £63,000 gross. As a sole trader the net take-home is approximately £47,851 (income tax £12,632, Class 4 NI £2,517). Through a limited company it is approximately £45,328 (corporation tax £9,366, dividend tax £4,671, £2,500 admin cost). At this income level the sole trader route wins; the Ltd saving only turns positive above roughly £80,000 to £100,000 annual profit.
Worked example: Marcus is a senior solicitor considering his options with £150,000 annual profit and no pension contributions. As a sole trader or partnership/LLP member, his income tax is £53,703 (personal allowance tapers to zero at this income level; taxable income £150,000 split as 20% on the £37,700 basic band, 40% on the £87,440 higher band to £125,140, and 45% on the £24,860 above) and Class 4 NIC is £4,257 (6% on £37,700 plus 2% on £99,730 above the upper limit), leaving a net take-home of £92,040. Through a limited company (£12,570 salary, remainder as dividend), corporation tax on £136,295 of company profit is approximately £32,368 (marginal relief band), leaving £103,926 as dividend. Dividend tax at 2026/27 rates (10.75% basic / 35.75% higher) on £103,926 comes to approximately £29,612, giving a net take-home of around £84,384 after the £2,500 annual admin cost. Partnership/LLP wins by approximately £7,656 at this profit level.
Frequently asked questions
- Are partnership and LLP really treated the same for tax?
- Yes. Both are tax-transparent: each member is taxed personally on their share of profits (income tax plus Class 4 National Insurance). The legal distinction between partnership and LLP does not affect income tax or NI treatment for individual members.
- Should I incorporate my solicitor practice?
- It depends on your income level, plans to retain earnings in the business, future exit route, and whether you intend to bring in shareholders. At profits below roughly £80,000-£100,000 the tax saving from a limited company is modest or zero after admin costs. Above that level the saving grows, but must be weighed against the complexity and running cost of a company.
- I am a locum solicitor. Which structure is usually best?
- At typical locum income levels (£50,000 to £90,000 gross) the sole trader route usually produces a higher net take-home than a limited company once corporation tax, dividend tax, and the annual admin cost are factored in. The Ltd advantage only becomes material above roughly £100,000 gross profit and grows if you intend to retain earnings inside the company rather than extract them immediately. Use the day-rate mode to see your specific position.
- What pension contribution should I enter?
- Enter your planned annual personal pension contribution. This reduces your taxable income for all three structures (sole trader, partnership/LLP, and the Ltd salary/dividend split). The annual allowance is £60,000 (2026/27), tapering for high earners.
Need help interpreting your results?
These calculators give directional figures based on published rates. Your actual position depends on firm structure, basis period adjustments, existing capital contributions, and your specific revenue profile. We model the full picture as part of our advisory work.
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