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Compare Sole Trader And Limited Company

compare_sole_trader_vs_ltd
Read-onlyIdempotent

Compare the tax and take-home of trading in the UK as a sole trader against a limited company, at a given profit. An estimate for the current UK tax year. Needs no account.

Tool call template

Replace each placeholder with a value matching the input schema. Only required parameters are included; add optional parameters as needed.

{
  "id": 1,
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "arguments": {
      "profit": "<profit>"
    },
    "name": "compare_sole_trader_vs_ltd"
  }
}

Input Schema

NameRequiredDescriptionDefault
profitYesAnnual profit before tax, in pounds.
companyNoWhich company to read, by name or id, when the account has more than one (see list_companies). Leave it out to use the only company, or the default.
extra_running_costsNoExtra yearly costs of running a company (accountant, software), in pounds, if known.

Schema Changelog

Changes observed during successful MCP inspections.

  1. Added

TDQS

A3.6/5.0
Behavior3/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

The annotations already declare readOnlyHint, idempotentHint, destructiveHint=false and openWorldHint=false, so safety is covered. The description adds genuine value by flagging that the result is an estimate for the current tax year and requires no linked account, but it says nothing about the assumptions behind the estimate (e.g. allowances or NIC treatment) or what the comparison output contains.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Three short sentences, none wasted: the core comparison comes first, then the estimate/tax-year caveat, then the no-account prerequisite. Front-loading the operation before the qualifications is exactly the right structure for a calculator tool.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a three-parameter, read-only calculator with no output schema, the description conveys enough: what is compared, at what input, under what assumption (current-year estimate), and that no account linking is needed. The main residual gap is the shape of the returned comparison, which the phrase "tax and take-home" only loosely implies.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so every parameter is already documented in the schema, including the company parameter's pointer to list_companies. The description only reinforces the profit input ("at a given profit") and says nothing about extra_running_costs or how the company selector behaves, so it adds little beyond the structured data.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description gives a specific verb and resource: compare tax and take-home for a sole trader versus a limited company at a given profit level, scoped to the UK. It clearly signals a two-option comparison rather than a single-structure calculation, which helps separate it from siblings like estimate_sole_trader_tax and compare_salary_dividends, though it never names those alternatives explicitly.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines3/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Useful context is supplied (an estimate, current UK tax year, no account required), which tells an agent this is a quick what-if rather than a filing-grade calculation. However, there is no explicit statement of when to prefer this over the other tax/company tools in the catalog, so routing must be inferred from the tool name and purpose alone.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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