Mirandus Accountants is an expert accounting and chartered tax advisory practice based in London and Edinburgh. We specialise in meeting the needs of private clients and their businesses.
Visit our Mirandus Wealth site for your financial planning. If you have pension, investment, protection or mortgage needs, we can help.
When it comes to taking money out of your limited company, the big debate is usually the same: dividends or salary? Both routes put cash in your pocket, but the tax treatment is very different—and the balance between them keeps shifting with every Budget.
As we move into 2025, changes to dividend allowances, thresholds, and National Insurance rates mean the “best mix” for directors isn’t the same as it was a few years ago.
We break down how salary and dividends are taxed in 2025, compare the numbers, and explore which blend offers the most tax-efficient outcome for small business owners and contractors.
In this guide, we’ll unpack the current Corporation Tax system, explain how marginal relief works in practice, and show what it means for small and growing companies navigating the thresholds.
With different thresholds, a main rate of 25%, and the reintroduction of marginal relief, the calculation isn’t as straightforward as it used to be. Now, where your profits fall can make a big difference to the actual tax rate your company pays.
For many company directors, pensions aren’t just about long-term retirement savings—they’re one of the most powerful tax planning tools available right now. Contributing through your company can reduce Corporation Tax, cut personal tax exposure, and still build a valuable nest egg for the future. Yet too often directors either underuse this strategy or overlook it altogether, missing out on both immediate and long-term gains.
In this article, we’ll explore how pensions work as part of a director’s tax planning toolkit, the reliefs available, and the practical steps to make contributions work harder for both your business and your personal wealth.
