Many freelancers start as sole traders — simple, easy, and cost-effective. But as your income grows, moving to a limited company can offer tax efficiencies and added credibility.

When to consider the switch:

• You’re consistently earning above the higher tax threshold
• You want to separate personal and business liability
• Clients prefer working with limited companies
• You’re planning to reinvest profits in growth

The right timing can save you money and unlock new opportunities — but it’s not a one-size-fits-all decision.