Someone told you to go limited. Nobody showed you the numbers. That is the part I do first.
Nasir Rasheed, Director
Sole trader to limited company for £150k+ sole traders who want the numbers first
Sole trader to limited company is a switch worth doing on figures, not on what someone said at a job. Nexus runs the comparison on your own numbers, then handles the formation and the handover.
Most sole traders hear they should incorporate long before anyone shows them what it would leave them with. A filing-only accountant does the self assessment and never raises it. The incorporation review puts both positions side by side, including the year the switch happens.
Nexus Tax and Accounting Solutions is a Milton Keynes accountancy practice run by Nasir Rasheed MAAT AATQB. It moves sole traders turning over £150,000 or more into limited companies, starting with an incorporation review that compares both positions on their own figures. Accounts, corporation tax, VAT, payroll and self assessment then run on one monthly fee.
Accredited and certified
- Nasir Rasheed MAAT AATQB
- Established 2024
- Three new clients a month
- Milton Keynes · UK-wide remote
What you get when you switch with Nexus
Both positions costed on your own figures
Sole trader and limited company, compared on your turnover, your costs and what you actually take out.
A VAT scheme chosen rather than defaulted
Standard, flat rate or cash accounting picked on your real costs, and checked again after incorporation.
Your tax bill a month before it lands
Once the company is trading, corporation tax and dividend headroom are forecast before the year end.
What sole traders say in the year before they finally incorporate
Three conversations that come up again and again, and what waiting costs.
- Incorporate
“Two people told me I was mad to still be a sole trader, but nobody ever put a number on it.”
Another full year of tax goes by while the decision waits. The comparison itself takes about an hour.
- Tax bill
“My January bill went up again and my accountant just emailed me the figure and the payment deadline.”
Filing the return is not the same as looking at what you are paying. Nobody had checked the structure.
- VAT
“I registered when I hit the threshold and picked whatever scheme the form suggested. That was four years ago.”
A scheme that was never chosen on your costs quietly charges you more every quarter.
- Day 90
What changes once the advice is in the room
You stop guessing whether incorporation is worth it and see it written down both ways. The VAT scheme, the salary and the dividends are set together rather than one at a time. From then on the tax bill arrives in a forecast before it arrives from HMRC.
Quick check · no email
If your accountant can’t tell you whether incorporating would leave you better off, what your tax bill will be before it lands, and get back to you this week, you have the wrong accountant
Answer these three questions about the accountant you have now.
Question 1 of 3
Could they show you this week what incorporating would do to your take-home?
Could they tell you whether your VAT scheme is the right one for your costs?
Could they give you your tax bill a month before it is due?
Three noes means nobody is looking at your position, only at your deadlines. At £150,000 or more of turnover that gap is usually worth real money, and the incorporation review is where it gets measured.
You are reasonably served on the compliance side, and one area has never been checked. Nexus reviews structure, VAT scheme, pay and software together when you join, so you are told why each is right or what should change.
Three yeses and you already have what most sole traders at your level do not. Read the guides instead, and come back if your turnover or your costs change shape.
Sole trader or limited company: what actually changes
Both are legitimate. The difference is what gets taxed, what gets filed and what you control.
Staying a sole trader
Every pound of profit is taxed as yours, whether you take it out or leave it in.
One self assessment return a year, with Making Tax Digital for income tax coming.
No Companies House filing, no confirmation statement, no accounts on public record.
Below £150,000 of turnover the saving rarely covers the extra admin, so Nexus says so.
Trading as a limited company
You decide what to take and when, through salary and dividends planned together.
Corporation tax is on company profit, and it is forecast a month before the bill lands.
More to file: accounts, CT600, confirmation statement, payroll and VAT, all on one monthly fee.
At £150,000 or more the maths usually works, and the review proves it either way.
Eight questions to ask before you incorporate
Answer these honestly and you will know how far along you are.
- 01
Is your turnover £150,000 or more?
Below that, incorporation rarely pays for the extra filing.
- 02
Has anyone compared both positions on your actual figures?
Opinions are not a comparison.
- 03
Do you know what you would take as salary and what as dividends?
That split decides much of the saving.
- 04
Is your VAT scheme chosen on your real costs?
Low input VAT usually points one way, heavy materials another.
- 05
Do your books reconcile month to month?
A company needs numbers that stand up, not a January scramble.
- 06
Do you have staff or subcontractors to bring across?
Payroll and CIS need planning before, not after.
- 07
Do you know when your first corporation tax bill would fall due?
You should have the date and the figure well ahead.
- 08
Is your current accountant raising any of this with you?
If not, that is the real problem to fix.
What Nexus runs once the company is trading
The switch is the start. The routine afterwards is what keeps the saving.
Accounts, corporation tax and filings
Year-end accounts, CT600 and the confirmation statement, prepared from books that reconcile.
VAT scheme, payroll and dividends
The scheme reviewed on your costs, payroll on schedule, and the salary and dividend split planned.
Forecasts before the bill arrives
Corporation tax and dividend headroom forecast a month ahead, with your self assessment handled too.
Entry 01
What the review checks before you incorporate anything
Every new client gets the same review of their set-up, whatever the answer turns out to be.
Clients described by type. Names withheld.
What clients say
How the switch runs, from comparison to first forecast
Four stages, so you know what happens and when.
You see both positions in writing
Sole trader against limited company on your figures, with the VAT scheme and pay plan attached.
The company exists and trades properly
Formation, registrations, bank and VAT move across, and the sole trader position is closed off cleanly.
Salary, dividends and bookkeeping settle into a routine
Payroll runs on schedule, the books are current, and you know what you can draw.
Your first corporation tax forecast arrives early
The tax and dividend position is set out ahead of the year end, so the money is there.
When incorporating is the wrong answer
Sole traders under £150,000 of turnover, where the extra filing usually eats the saving.
Businesses in their first year or two, still working out what the income looks like.
Property-only landlords and cash businesses, which Nexus does not take on.
Owners buying on price alone, who want a filing service and no conversation.
If the review says stay as you are, that is what you will be told, with the numbers behind it.
Questions sole traders ask before they incorporate
What does the monthly fee include if I move from sole trader to limited company?
One monthly fee covers your year-end accounts, corporation tax, confirmation statement, VAT returns, bookkeeping, payroll and your own self assessment. Proactive planning is in the same fee on a fair-use basis: VAT scheme review, salary and dividend planning, and a corporation tax forecast a month before the bill lands. The incorporation review is included when you join.
I already have an accountant, so is a second opinion on incorporating worth it?
If your accountant has already compared both positions on your figures and told you why the current one is right, you are covered. If the subject has never come up at £150,000 or more of turnover, that is worth checking. Nexus reviews structure, VAT scheme, pay and software for every new client.
Do I have to move to different bookkeeping software?
Not automatically. Nasir looks at what you use now and tells you whether it works for a limited company with payroll and VAT, or whether a change would save you time. If your current set-up is fine, it stays. Any move is planned so nothing is lost in the handover.
What happens with my current accountant when I switch to Nexus?
You do not chase them yourself. Nexus writes for professional clearance, collects your records and confirms what has been filed and what has not. There is no separate charge for the handover. After that comes the set-up review and a timetable for the first year, so you know every date in advance.
When is sole trader to limited company actually worth doing?
Usually at £150,000 or more of turnover, where the profit left in the business and the salary and dividend split make a visible difference. It also depends on your costs, your VAT position and whether you have staff. The review measures it rather than assuming it, and sometimes the answer is to stay put.
How long does it take to incorporate and move everything across?
The comparison comes first, and the company itself can be formed quickly once you decide. Registrations, the bank, VAT and payroll typically settle within the first month, and the bookkeeping routine within two. Your first corporation tax forecast is prepared well ahead of the year end rather than at the deadline.
Three ways to take the next step
Take the two-minute quiz
It tells you whether Nexus is the right fit, and the incorporation review follows with the numbers on your own figures.
See the numbers for your business 02 · A question firstWant to ask one question first?
Call or email and Nasir replies himself, usually the same week.
Ask Nasir a question 03 · Still decidingStill deciding
The guides cover structure, VAT schemes and what a limited company has to file each year.
Read the guides →