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Finstem Accountants Always here to help your SME - accounting & tax services which give you clarity. Fast replies. Fixed fees.

03/08/2026

Most business owners pay too much tax every time they take money out of their
company. 💷

A holding company can change that!

Instead of extracting profits personally, you can
move them into a holding company, keeping the
money inside your corporate structure and giving
yourself more flexibility to invest in:

🏢 Property
📈 Stocks & shares
💼 Other businesses

And as a bonus, profits can be separated from your
trading company, helping to protect them from
commercial risks.

For many business owners, big tax savings come
from changing their structure.

Comment “HOLDCO” and I’ll message you
everything you need to know about holding
companies. 📲

15/04/2026

💡 One of the most tax-efficient ways to pay yourself as a UK limited company director.

By structuring your income correctly, you could legally take-home £46,271 with minimal personal tax.👇

📊 Example (2026/27 tax year):
✔ Salary: £12,570
✔ Dividends: £37,700
➡ Total income: £50,270

What does that mean in tax terms?
❌ No income tax
❌ No employee National Insurance
✔ Dividend tax of £3,999 at 10.75%

💸 Take-home pay: £46,271

⚠️ Important to remember:
Dividends are paid from after-tax company profits, so marginal rate of corporation tax (19%–25%) will already have been paid before dividends are issued.

Everyone’s situation is different and the right mix of salary and dividends depends on your personal circumstances and should always be reviewed with an accountant or tax professional.

📚 This post is for educational purposes only and is not financial or tax advice.
📅 Figures based on 2026/27 UK tax rates and thresholds.

Save this post 🔖 and follow for more UK limited company tax tips.

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Oswestry
SY111SJ

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