Company directors have more choices than employees, and more ways to get them wrong. As a business owner, you decide how much to draw as salary versus dividends, when to time that income, and how to keep the business tax efficient as it grows.

Getting the Balance Between Salary and Dividends Right

The dividend allowance is £500 for 2026/27, and dividend tax rates rose again this year, shifting the maths on salary versus dividends. We work out where your personal allowance, dividend allowance and Income Tax bands sit, then build a remuneration structure aiming for the most tax-efficient way to draw income.

This also covers pension contributions, benefits in kind and electric vehicles through the company, all of which change what you pay personally. Making pension contributions before the tax year ends is one of the simplest tax advantages available to a director, cutting the company's tax bill and building your retirement plans. A single contribution can benefit your personal tax position and the company's tax bill. Retaining profit versus extracting it is worth reviewing yearly, and each option carries its own tax benefits.

Planning Around Corporation Tax and Profit Extraction

We plan Corporation Tax directly, looking at capital allowances and other allowances, Research and Development tax credits, and other tax reliefs. How you invest surplus profit is as much a tax question as a business one. The UK has around 5.3 million small businesses, roughly 93% of all UK businesses, most making profit extraction decisions without proper corporate tax strategies.

If you're weighing up selling eventually, we look at how your business structure affects that sale, and how much you'll keep once tax is paid.

Property brings its own tax questions, whether you hold one rental home or a wider portfolio of property investments including commercial property. We advise on rental income, mortgage interest restrictions, and whether property should sit in your name or inside a company, using the allowances available to landlords.

If you're planning to sell, Capital Gains Tax needs thinking through before you list the property. The annual tax-free Capital Gains Tax allowance is £3,000, and rates sit at 18% or 24% depending on your income, whether the property is residential or commercial property. This can benefit landlords with a single property as much as those with a large portfolio. Many also ask whether to invest rental profit back into the portfolio or take it as income, alongside joint ownership, transferring property between family members, and your wider Inheritance Tax position and the assets you plan to pass on.

Inheritance Tax planning uses the exemptions and reliefs already available, not a loophole. We look at lifetime gifting, Potentially Exempt Transfers, and whether a trust suits your family's situation, working from your individual circumstances, not a standard checklist. We also coordinate with financial planners on trusts and gifting.

For business owners and landlords, this often overlaps with business and agricultural relief, so we look at your business structure and estate together, protecting the assets you've built. Planning early gives your family members more options and protects the wealth built for future generations, rather than losing a large share to tax. A gifting plan started early is worth far more than one started late.

Personal tax planning reviews typically run £300 to £750, depending on income and assets. Business tax planning for limited companies sits higher, often £500 to £1,500, reflecting Corporation Tax planning, profit extraction advice and director remuneration work. Fees are based on your finances and financial situation, not a flat rate.

Complex cases, such as a business sale, a large portfolio of investments, or Inheritance Tax planning across generations, cost more. Every business owner's situation is different, so quotes are based on your actual circumstances. These figures are a rough guide based on recent projects, and the actual cost varies, so we agree a fixed fee before any work begins, and you know what you'll pay, keeping tax at the legal minimum. The plan we agree is reviewed every year, not filed away.

If your tax bill has felt too high, or you haven't had a proper plan in place, get in touch with Vexo Accounting. Whether you're a business owner, a landlord, or simply want to pay less tax, we'll give you a free, no-obligation quote for the tax planning services you need, and tell you honestly what you'll pay against what you're likely to save. Contact Vexo Accounting today to get started and keep more of the wealth you've built.