The £100,000 tax trap is the unofficial name for an effective 60+% marginal tax rate that hits earnings between £100,000 and £125,140.
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Changes to tax mean that paying yourself as a director is more complex than ever. This blog outlines salary options to consider for 2026/27.
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Earning more money is a significant goal for most people but there may be cases where a pay rise can actually leave you worse off.
An annual salary of £12,570 with the rest topped up by dividends is considered the standard by many business owners, but why is this?
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Dividends are a popular remuneration method among company shareholders, partly because they are taxed more lightly than salary.
Ensure you are paid in a way that safeguards your company while protecting your personal income from unnecessary tax bills.
Your mix of salary, dividends, bonuses, and other benefits determines your personal tax bill, NICs and corporation tax.
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