Category Archives: Director’s Pay vs Dividends

April 2026 tax changes: what’s changing (and what that means for you)

writing notes on April 2026 tax changes

April always comes with a fresh tax year… but 6 April 2026 is shaping up to be a big one for business owners, directors, employers and investors. In this blog, I will highlight some of the main changes starting in April, reminding some that have already happened and what this might mean for you and

So you want to take a dividend from your company?

woman talking about So you want to take a dividend from your company?

Thinking about taking some money out of your limited company? Before you hit ‘transfer’, it’s worth understanding how dividends actually work — and what to check before you pay yourself. Dividends can be a brilliant, tax-efficient way to pay yourself as a business owner, but they come with a few rules and responsibilities. Let’s break

Statutory maternity pay for directors: what you need to know

Angela working out statutory maternity pay for directors

Directors often ask whether they can claim Statutory Maternity Pay (SMP). The answer is yes — but only if certain conditions are met. If you’re a company director and planning for maternity leave, here’s a clear breakdown of the rules, calculations, and how payments are made. Who qualifies for statutory maternity pay? To be eligible

Should You Have a Company Car? The most asked Question we get!

DNA Branded Mini company car tax

If I were to create a hit list of questions asked by clients, the one that would be in our top 3 would be around company cars and company car tax implications. A company car is often seen as a desirable perk — but in reality, whether it’s a good idea depends on who you

Sole Trader vs Limited Company director – what’s best for your business?

woman thinking about Sole Trader vs Limited Company director – what’s best for your business?

Why it matters Setting up as a sole trader or limited company director isn’t just a bureaucratic choice—it’s a strategic decision that affects your taxes, your rights, and your long‑term goals. Whether you’re nearing £50K income and facing MTD ITSA, or edging over £100K and losing your personal allowance, this clear breakdown will help you

Why Alphabet Shares Could Be a Smart Move for Your Business

Woman thinking about alphabet shares structure dividends for family businesses

If you run a limited company, you might assume all shares are created equal. But that doesn’t have to be the case — and in many small businesses, it shouldn’t be. Creating different types of shares, known as alphabet shares (like A shares, B shares, C shares etc), can offer you flexibility, control, and some

The Best Director’s Salary for 2025/26: A Simple Guide

If you’re a director of a limited company, you probably pay yourself a mix of salary and dividends to keep taxes low. For the last few years, the best salary for tax efficiency has been £9,096 per year, because it gave you maximum Corporation Tax relief while avoiding PAYE tax, National Insurance, and still qualifying

Demystifying tax codes: a business owner’s guide to 1257L and 0T

tax codes

When you dreamed of running your own business, you probably didn’t kick your heels in delight for the day you’d have to deal with tax codes! While a good understanding of them is needed to avoid paying more tax than necessary, they’re really not as complicated as they seem. Let’s look at how to find

Dividend tax: what is it and how does it impact your business?

dividend tax

As a limited company owner, you’ll most likely pay yourself using a combination of salary and dividends. While it’s often the most tax-efficient way to withdraw money, be careful! Dividends have different tax rules compared to a normal salary. Don’t worry – we’re going to walk through what they mean for your business and how