Tax-Efficient Profit Extraction & Executive Remuneration
Moving money from your company to your personal account creates "Tax Leakage". We design extraction strategies that plug the leaks and minimise your effective rate.
The Cost of Extraction
You lose ~45% to Income Tax & NICs.
Better. You lose ~20-33% depending on rate.
Mix of Salary, Divs, Pension & EVs.
Effective rate < 20%.
"Without a plan, the default tax system takes ~45% of your earnings. With a plan, you can legally halve that."
Plug the Leaks
Moving money from your company to your personal account is the most heavily taxed transaction you will make. We structure it to minimise "leakage" at every step.
The Salary Trap
Taking a high salary is rarely efficient. National Insurance (Employer + Employee) creates massive tax leakage.
Wasted Family Allowances
If your spouse has unused tax bands, you are overpaying as a household.
Post-Tax Investing
Investing personally means you have already paid Corporation Tax AND Dividend Tax on the money.
Designing Your Pay Structure
Diagnostic Review
We analyse your current extraction method. Are you taking too much salary? Are you missing pension allowances? We benchmark your effective tax rate.
Strategy Modelling
We model 3 scenarios: Low Salary/High Divs, Pension Heavy, and Spousal Involvement. We show you the "Net Cash in Pocket" for each.
Implementation
We set up the payroll for the optimum salary (£12,570 or £9,100). We prepare the dividend waivers or share transfers required for the new structure.
Documentation
Tax strategies fail on paperwork. We issue the board minutes, dividend vouchers, and loan agreements to prove the strategy is legal.
Annual Re-Calibration
Tax bands freeze or change every Budget. We review your strategy annually to ensure you stay in the most efficient extraction zone.
What You Receive
Remuneration Report
Your bespoke tax plan.
Dividend Vouchers
Legal backing for payments.
Pension Calculations
Carry-forward allowance check.
Payroll Setup
Optimum salary configuration.
S455 Review
Director loan tax mitigation.
Spousal Transfer Forms
If using alphabet shares.
The Perceptive Difference
All advice is indemnified and compliant with HMRC rules.
Get a StrategyChoose Your Strategy
The right extraction method depends on your family situation and income level.
Optimised Extraction
Best for: Single Director
Low Admin
The standard efficient model. We set your salary to utilise your Personal Allowance without triggering NICs, and top up with dividends to the Basic Rate band limit. Simple, effective, and low risk.
Family Strategy
Best for: Family Business
Family Wealth
Uses "Alphabet Shares" (A & B classes) to pay different dividends to you and your spouse. This utilises two sets of tax bands, potentially saving £15k+ per year in higher rate tax.
Advanced: Alphabet Shares
Standard shares require equal dividends to all owners. "Alphabet Shares" allow you to pay different amounts to different people.
Flexibility
You hold "A Shares", your spouse holds "B Shares". You can declare a £50k dividend on A Shares and £0 on B Shares (or vice versa) to target specific tax bands.
Safety
This must be set up correctly to avoid HMRC's "Settlements Legislation". We ensure the shares have the correct voting and capital rights to be valid.
Pricing Clarity
Standard remuneration planning is included in our monthly packages. Complex restructuring is a one-off fee.
Fixed Fees
Restructuring Fees Apply
Strategic Packages
Clear options for optimising your income.
Standard Plan
Included
Part of our monthly compliance packages.
- Optimum Salary Setting
- Dividend Vouchers
- Basic Tax Planning
Advanced Review
Project Fee
One-off restructuring project.
- Alphabet Share Setup
- Spousal Transfer
- HMRC Clearance
Exit Strategy
Custom Quote
Preparing for business sale (BADR).
- Capital Reduction
- Liquidation Planning
- 10% Tax Rate Target
Common Questions
For 2024/25, the optimum salary is usually £12,570 (if you have no other income). This utilises your Personal Allowance without triggering Employee NICs. However, employer NICs apply above £9,100, so some directors choose the lower threshold. We calculate the exact sweet spot for you.
No. Dividends can only be paid from 'Distributable Reserves' (accumulated post-tax profits). If you made a loss this year but have profits from previous years, you can use those. If you have no reserves, dividends are illegal.
Transfers between spouses are usually Capital Gains Tax free (No Gain/No Loss). However, you must avoid the 'Settlements Legislation' which stops you shifting income purely for tax avoidance. The spouse must have ordinary shares with voting rights (or use Alphabet shares).
If you borrow money from your company (Director's Loan) and don't repay it within 9 months of year-end, the company pays a 33.75% tax deposit to HMRC. You get this back when you repay the loan, but it kills cashflow.
