Remuneration Planning
For director-shareholders, how you extract profits from your company can make a significant difference to your overall tax position. A well-designed remuneration strategy — combining salary, dividends, pension contributions, and other tax-efficient benefits — can materially reduce your personal tax liability and increase the net amount you retain.
What are the benefits?
Optimal Salary and Dividend Mix
Drawing a low salary (at or just above the National Insurance threshold) and topping up with dividends can significantly reduce National Insurance Contributions compared to a higher salary. We calculate the most tax-efficient combination for your circumstances each tax year.
Pension Contributions
Company pension contributions are deductible against Corporation Tax and are not subject to Income Tax or National Insurance for the individual, making them one of the most tax-efficient ways to extract value from a company. We advise on maximum allowable contributions.
Tax-Efficient Benefits in Kind
Certain benefits — such as electric vehicles, cycle to work schemes, and childcare vouchers — can be provided through the company in a more tax-efficient way than equivalent cash salary. We identify the right mix for your personal circumstances.
Family Member Employment
Where appropriate, employing a spouse or family member at a commercially justifiable salary can spread income across multiple personal allowances and lower tax bands, reducing the overall family tax burden.
How can Zenus Tax help?
We prepare an annual remuneration model showing the optimal salary and dividend split for the current tax year
We advise on the most tax-efficient pension contribution strategy within your annual and lifetime allowance
We identify any available benefits in kind that can replace taxable cash salary
We review your position at the start of each tax year to account for Budget changes
Frequently Asked Questions
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