Comprehensive coverage
What’s inside
8 chapters covering every meaningful remuneration decision for UK director-shareholders in 2026/27. Includes 8 worked scenarios from £50k profit to £500k profit.
CHAPTER 01
The April 2026 dividend rate rises — what changed
Basic rate 8.75% → 10.75%. Higher rate 33.75% → 35.75%. Additional rate 39.35% (unchanged). The £500 dividend allowance. Why this isn’t a small change.
CHAPTER 02
Choosing the optimal director salary
The two viable options: £5,000 Secondary Threshold or £12,570 personal allowance. When each wins. Why the answer depends on Employment Allowance availability and pension plans.
CHAPTER 03
Salary vs dividend — the post-April-2026 maths
The combined corporation tax + dividend tax wrapper rate at each profit level. Why dividends still win — but by a smaller margin than they used to. Five worked examples at £30k–£300k extraction.
CHAPTER 04
Employer pension contributions — the often-best option
Deductible against corporation tax. No employer NIC. No personal income tax. Doesn’t count against the £100k Adjusted Net Income trap. Three scenarios where pension beats both salary and dividends.
CHAPTER 05
Benefits in kind — EV cars, salary sacrifice, healthcare
The 4% EV BIK rate (2026/27). Why a £50k EV through the company costs £800 in BIK income tax for a higher-rate taxpayer. Salary sacrifice rules. Healthcare and other commonly-mishandled BIKs.
CHAPTER 06
Director loans and the s.455 charge
The 33.75% s.455 tax on overdrawn DLAs not repaid within 9 months. Beneficial loan rules above £10k. Bed-and-breakfasting rules. When director loans are a legitimate tool — and when they’re a trap.
CHAPTER 07
Spouse and family income shifting
Bringing a spouse onto the payroll. Joint shareholdings and dividend distribution. The settlements legislation. What HMRC will and won’t challenge.
CHAPTER 08
Exit planning — BADR and Investors’ Relief
BADR at 18% on £1m lifetime. The 24-month qualifying period. Pre-sale planning. Investors’ Relief for non-employee shareholders. When dividends should come down and what should replace them.
