Practical advice on tax, bookkeeping, and growing your Manchester business.
For decades, incorporating as a Limited Company was the "default" advice for any freelancer or small business owner reaching a certain profit threshold. The logic was simple: dividends were a tax hack that beat the Sole Trader route every time. However, as we move into 2026, the landscape has shifted significantly. With tightening regulations from Companies House, rising administrative costs, and a shifting tax regime, the "Limited by default" strategy is no longer just outdated—it could be a costly mistake. This guide explores the reality of running a Limited Company in 2026 and identifies who should stick to being a Sole Trader and who should embrace incorporation.
