Business Owners
Profit Extraction
Optimise how you take money from your business
Overview
How you extract profit from your business significantly affects your total tax bill. Salary, dividends, pension contributions, or loans - each has different tax consequences.
We model your options and advise on the most tax-efficient extraction method based on your business profit, income level, and personal circumstances. Integrated planning can save thousands annually.
Key Areas Covered
What we cover as part of this service.
- Salary optimisation (PAYE thresholds, National Insurance)
- Dividend distribution and planning
- Pension contributions and tax relief
- Director's loans and repayment timing
- Bonus timing and tax planning
- Retained profit implications
- National Insurance calculations
- Personal allowance optimisation
- Multi-director businesses (allocation strategy)
Common Issues We Solve
Problems we see regularly — and how we fix them.
Inefficient Extraction
Many business owners simply extract profit via salary or dividends without considering alternatives. Integrated planning optimises the method.
Missed Pension Opportunity
Pension contributions get tax relief and reduce both corporation and income tax. Many business owners don't maximise this.
Misunderstood Dividends
Dividing profit between company and personal tax requires understanding dividend allowance, rates, and interaction with other income. Mistakes are expensive.
Pricing for This Service
Clear fees. Fixed fee confirmed in writing before we begin.
Private Clients
£700
Best for: Directors optimising salary, dividends and pension extraction
Get Your Fixed QuoteFixed fee confirmed on consultation.
Frequently Asked Questions
Depends on your business profit and personal circumstances. For many SMEs, a salary of £12,570 (personal allowance) is optimal, taking all remaining profit as dividends. But other scenarios are better. We model your position.
The standard annual allowance is £60,000, subject to relevant earnings, tapering for high earners and the money purchase annual allowance where applicable. Company pension contributions can be tax-efficient where they are wholly and exclusively for business purposes.
First £1,000 of dividend income is tax-free. Above that, dividends are taxed at 8.75% (basic rate), 34.375% (higher rate), or 39.35% (additional rate). We ensure you stay within efficient bands.
Retaining profit keeps money in the company for growth/buffer. Extracting via salary/dividends gives you personal liquidity but costs in tax. We advise based on your business plan.
Director's loans are flexible but trigger close company complications if not repaid within 9 months. We advise timing and structure.
Why Choose UA Tax
Integrated Planning
We optimise your personal + corporate tax, not just one or the other.
Scenario Modelling
We model multiple scenarios to find your optimal extraction method.
Ongoing Review
As circumstances change, extraction strategy may change. We review regularly.
Ready to optimise your profit extraction?
Book a consultation and we will confirm what you need and provide a fixed fee quote.