A short note on the question that comes up most often in our first conversations with sole traders.
For most sole traders making under £30,000-£40,000 a year, the answer is: not yet. The administrative cost of running a limited company - statutory accounts, corporation tax filings, payroll, dividend documentation - usually outweighs the tax savings until profit gets above that level.
For sole traders making between £40,000 and £80,000, the answer is: probably, but it depends. The tax advantages start to be real, but they're not automatic. They depend on how you take money out of the business, whether you need to retain profit for growth, and what your longer-term plans are.
For sole traders making over £80,000 a year, the answer is almost always: yes. The tax efficiency of a properly-structured limited company at this level is significant, and the administrative cost becomes a small percentage of the saving.
The honest truth is that the answer is rarely just about tax. It's also about liability, about how the business looks to suppliers and lenders, about what you want the business to become in five years. That's the conversation that's worth having before you make the decision.
If you'd like to talk it through, the first half-hour is free.