Director Tax Planning
For company directors and shareholders reviewing remuneration and income extraction strategies, so that how you take money from your company still fits your circumstances.
How you pay yourself deserves a fresh look
If you are a company director, how you take money from your business deserves more thought than simply repeating last year’s approach. Salary, dividends, pension contributions, benefits, business expenses and the timing of payments all play a part. Each decision can affect both your personal and your company’s tax position.
Yet many directors continue using the same remuneration structure year after year without reviewing whether it still reflects their current circumstances. A Director Tax Planning Review allows you to step back and look at the bigger picture. The objective is simple: to help you make informed decisions before payments and transactions take place.
WHAT WE REVIEW
A Director Tax Planning Review can help you review:
- How you currently extract income from your company
- The interaction between salary, dividends and other income
- Pension contribution considerations
- Timing of remuneration
- Business reinvestment versus personal extraction
- Potential tax implications of future decisions
- Director's loan accounts
Who it's for
Director Tax Planning is for company directors and shareholders who take income from a limited company and want to be confident their approach still fits. It may be particularly relevant if:
- You take a mix of salary and dividends
- You have other sources of income alongside your company
- Your company's profits have changed since you last reviewed your approach
- You are weighing up reinvestment against personal extraction
- You are considering pension contributions
- Your personal circumstances have changed
What you get
Depending on the scope we agree after your first call, you can expect:
- Identification of the key tax areas for your circumstances
- An initial assessment of risks and planning opportunities
- Priority recommendations and suggested next steps
- Where a detailed review is agreed, structured analysis, professional recommendations and an implementation plan
- Where required, ongoing planning and advisory support
There is no universal best way to pay yourself
The right approach depends on several factors, including your company’s profitability, your other sources of income, your personal financial requirements, existing dividend income, pension planning, future business investment plans and changes in your personal circumstances. A strategy that worked when your business generated £50,000 in profit may not necessarily remain appropriate as your business grows. That is why it is worth reviewing your approach as your business and circumstances change, rather than repeating the same structure by default.
A Proactive Approach
Decisions about salary, dividends, pension contributions, benefits, business expenses and the timing of payments are best considered before they are made. A review can look at how you currently extract income, how the different types of income interact and whether reinvesting in the business or extracting funds personally better suits your plans. The aim is to help you make informed decisions before payments and transactions take place.
Want to see how salary and dividends compare for your company? Try our Salary vs Dividend Calculator.
How it works
Your first call is a Tax Planning Discovery & Scoping Call. The purpose of the initial conversation is to understand your circumstances and determine where IB&Co can provide meaningful advisory support. From there, the process follows five clear steps.
Discovery
We start by understanding your circumstances and objectives.
Scope
We identify the areas requiring further consideration.
Review
Where appropriate, we undertake a detailed advisory review.
Recommendations
We provide professional guidance based on the agreed scope of work.
Ongoing Support
Where required, we provide ongoing planning and advisory support.
Meet your adviser
Ishmael Bangura, Managing Partner
Ishmael Bangura is the Managing Partner of IB&Co Accountants. He has been a practising accountant and tax adviser in the UK for about 15 years, and in that time has advised more than 950 clients, including startups.
Ishmael is also an entrepreneur who has built and exited businesses of his own, and that experience of running a business informs how he approaches tax planning with clients.
Other Tax Advisory Services
Tax questions rarely sit neatly in one area. Explore our other Tax Advisory services below.
Business Tax Advisory
For SMEs and growing businesses seeking a more proactive approach to tax planning. We help owners and directors consider the tax implications of business decisions before the year end, not after it.
Corporation Tax Planning
For businesses seeking greater visibility and planning around Corporation Tax. We help you bring tax considerations into investment, expenditure and profit extraction decisions earlier in the year.
Personal Tax Planning
For individuals with multiple income streams or increasingly complex financial circumstances. A decision in one area of your finances can affect your tax position in another, so it helps to plan ahead.
Property & Capital Gains Tax
For property owners, landlords and investors. We help you understand rental income, joint ownership and Capital Gains Tax considerations before a sale, transfer or other major transaction.
Residency & International Tax
For internationally mobile individuals and those with overseas income or cross-border interests. We help you understand UK tax residency and overseas income questions before key decisions are made.
Inheritance Tax Planning
For individuals and families thinking about estate planning, gifting, trusts and reliefs. Inheritance tax planning is really about making sure your money goes to the people you care about.
R&D Tax Credits
For companies investing in innovation, in any sector. We help identify qualifying R&D activities, document the work and prepare claims, including the HMRC paperwork.
Tax Investigation Support
For individuals and SMEs facing an HMRC enquiry, compliance check or disclosure. We act as your authorised agent and deal with HMRC on your behalf, so you do not have to face HMRC alone.
Stamp Duty Land Tax (SDLT)
For property buyers, including purchases through a company and mixed-use property. We advise on reliefs, the higher rates for additional dwellings and possible SDLT reclaims, ideally before you exchange contracts.
Frequently Asked Questions
There is no universal best way. The right approach depends on factors such as your company’s profitability, your other sources of income, your personal financial requirements, existing dividend income, pension planning and future investment plans.
Many directors repeat the same remuneration structure year after year. A strategy that suited your business at one stage may not remain appropriate as the business grows or your personal circumstances change.
It can. Decisions about salary, dividends, pension contributions, benefits, business expenses and the timing of payments can affect both your personal and your company’s tax position.
How you currently extract income from your company, how salary, dividends and other income interact, pension contributions, the timing of remuneration, reinvestment versus personal extraction, director’s loan accounts and the potential tax implications of future decisions.
Not always, but it can help. Filing a return reports what has already happened. Tax advisory looks at important decisions before you make them, so you can understand the possible tax implications while there may still be room to plan.
Our Tax Advisory service is designed to complement your existing accounting and compliance work.
We quote after the discovery and scoping call, once we understand what you need.
Request a callback
Prefer us to call you? Leave your details, the service you are interested in and a convenient time, and a member of the IB&Co team will call you back to talk through your circumstances.
Review how you pay yourself
Let’s start with your circumstances. Book a confidential initial conversation with IB&Co to discuss your circumstances and identify the areas where Tax Advisory support may be appropriate. Where detailed tax advice is required, we will explain the recommended next steps and engagement process.
Bring your latest accounts or tax return and a note of what you want to achieve.