Free calculator · UK 2025/26
Solicitor Take-Home Calculator
Choosing the right structure affects your annual net take-home more than most solicitors realise. Enter your profit and pension contribution to see how sole trader, partnership/LLP and limited company compare on a like-for-like basis.
Solicitor Take-Home Calculator
Choosing the right structure affects your annual net take-home more than most solicitors realise. Enter your profit and pension contribution to see how sole trader, partnership/LLP and limited company compare on a like-for-like basis.
Annual pre-extraction profit from your practice
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.
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.
- 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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