From: Tax Efficiency for English Limited Companies: A Complete Architecture
applicationpractical

Review your current salary-to-dividend ratio.

As dividend allowances shrink and tax rates for higher bands shift, the 'optimal' split is a moving target. A strategy that worked in 2023 may be inefficient in 2025.

Action

Consult with a qualified accountant to run a simulation of your income extraction under the 2026/27 tax rules.

Read the full exploration
What else is in this exploration
4 evidence blocks3 perspectives3 visualizations2 media resources5 rabbit holes
evidence
A director's salary of £12,570 per annum is a common benchmark for tax efficiency.
evidence
Employer pension contributions are corporation tax-deductible and can be highly tax-efficient.
evidence
The tax-free dividend allowance for the 2026/27 tax year is set at £500.
Sign up to unlock
Continue exploring
Tax Efficiency for English Limited Companies: A Complete Architecture
Evidence, perspectives, rabbit holes, and more