Is a limited company worth it on £100k revenue?
At £100k turnover, most people asking this question already suspect the answer is yes. Usually it is. The more useful question at this point isn’t whether to incorporate, it’s how much you’d actually save and whether you’re structuring your pay correctly once you have.
Why the answer tilts firmly toward yes here
If your profit after costs is comfortably into higher rate Income Tax territory as a sole trader, a limited company gives you real room to manage that. Corporation Tax on profits, then a modest salary plus dividends, typically comes out meaningfully ahead of paying Income Tax and Class 4 National Insurance on the whole lot. At this level the saving usually clears the extra accountancy cost by a wide margin.
The mistake people make at this stage
Taking all the profit out as dividends immediately, rather than thinking about a sensible salary level, pension contributions, or simply leaving some profit in the company. Extracting everything the moment it lands isn’t always the most tax efficient approach, and it’s worth a proper conversation with an accountant rather than guessing.
What to actually check before you commit
Run your real profit figure, not £100k, through our salary vs dividend calculator to see the actual pound-for-pound difference. Then think about whether you need an accountant on a monthly retainer at this size (most people at £100k do) rather than a once-a-year filing service.