Sole trader vs limited company: an estimate

Updated 2026-08-14

MatPilot gives you an informational estimate of your tax as a sole trader, and how a limited company compares. This is a guide under Revenue rules, not tax, legal or financial advice. Always confirm with your accountant.

Where to find it

Go to Gym, then Compliance. Under Sole trader vs limited company you will see an estimate based on your gym's revenue and expenses.

The estimate: annual profit, sole-trader tax with effective and marginal rates, and the limited-company corporation tax

What it shows

As a sole trader: an estimate of your income tax, USC and PRSI on your annual profit, with your effective rate and the rate on your top slice.
As a limited company: corporation tax (12.5%) on profit the company keeps.

The honest part

Incorporating does not automatically save you money. If you draw all the profit as salary, it is taxed much like sole-trader income and the company also pays employer PRSI. The advantage is on profit you reinvest or keep in the company, taxed at 12.5% rather than your personal marginal rate.

At lower profits your marginal rate can be below 12.5%, so incorporating would not save on tax. The estimate reflects this: it only shows a saving once your profit is high enough.

The reinvestment saving estimate with the informational, not-advice note

Set your structure

Tap Business structure to tell MatPilot whether you trade as a sole trader, limited company or partnership. That unlocks the exact filing to-dos that apply to you (Form 11, CT1, VAT3 and so on).

Important

These are rough estimates on a single-person basis, using rates that can change. They are informational only. Your circumstances, reliefs and pension options all matter. Confirm anything important with Revenue or your accountant.