Tax Savings on Trading as a Limited Company

It’s still favourable to trade as a limited company rather than as a sole trader, for instance, if you were prepared to keep some of the profits in the company so that they were not part of your own personal income for self assessment purposes then if your business made as much profit as £300,000 in the current year  you would save some £40,000 if you were to keep £75,000 in the business ( because maybe it was tied up in working capital or earmarked for buying a new piece of equipment). Obviously the saving falls if the level of your profits is correspondingly lower.