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UK Directors: the Labour-Proof Salary Strategy for 2026

Heelan Associates

77,649 views

If you are a UK director still clinging to the old 'minimum salary and dividends' strategy, I have some sobering news for you 🤷🏻‍♂️

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Note: As always, these videos are educational and should not be considered financial advice. Seek professional advice on your specific situation.

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20 Comments

@HeelanAssociates Creator 7 months ago Pinned

It's definitely not at all easy being a business owner, so tell me one change that you think the UK government (this or successive) could make small business owners' lives better/easier? 👇

@brakiwi4ever 6 months ago

Dividends increase from 8.75% to 10.75% is not a 2% increase, its a 22.85% increase and a 2 point increase.

@sceniknogal9580 6 months ago

So basically keep taking dividends, but remember to claim your expenses.
Me thinking I was going to find something I didn't know...

@marka4664 6 months ago

Whichever way you cut it, there is no escaping the HMRC, making use of all that Dan advises is absolutely helpful but if your business is your only income and you need decent amounts above the tax free benefits then accept that you will pay the tax man at some point - useful video but no eureka moments for me unfortunately

@graemejones9707 7 months ago

The mileage rate is a sick joke, it hasn't altered in about two decades. I am one of the many considering giving up and just not bothering to work any more. The tax assault on the self-employed has been relentless (corporation tax rises not even mentioned on here)

@123prestolee 7 months ago

Pay everything off as fast as you can, loan anything left to your limited company and invest. Then live your life in the lower rate tax band, along with your family members.

@stevenovetsky3274 7 months ago

Thanks for making this video.

@duncanray387 6 months ago

Thanks for the video but one point, after putting it in B the vast majority of the saving comes from the pension allowance.

@ThomasJones-q2h 6 months ago

This is such an important topic that many UK directors overlook. Thank you for clear explanation

@neilcharlton 6 months ago

Great if you can afford to put half your profits in a pension pot !
All accountants know these structures hmrc screw you any way you turn. The savings are just tinkering around the edges until they close them like the electric car benefits !

@johnmillen9218 6 months ago

Great work. P.S. Always write then draw your box ;-)

@elmo1234 6 months ago

3:15 What kind of gaming? 🤔🎲

@klisgiarc 6 months ago

75% of the savings came from deferred income (pension) but I need the cash now to fund 50k of rent plus 75k of private school fees. It's hard to be efficient when expenses are running hot.

@pyroBlastM 6 months ago

So how do you do it for your company?

@andrewwilkinson553 6 months ago

Try doing CT61 once per year

@liamcommins4305 4 months ago

What about the employment allowance if multiple employees and if at least 1 is not a director?

@abbott912 5 months ago

Apparently as from April 2026 you save tax paying yourself on PAYE if you're under the national insurance contributions threshold?

@bjpcorp 6 months ago

Omg, I didn't realize multiple owners meant multiple allowances! 😁

@roscopeco2000 6 months ago

Business mileage in personal car and electrical car running cost? surely if personnel car you wouldn't be able to claim running costs for a personal car only one owned in the business

@DragonXDrei 6 months ago

How about you take a mortgage or just use your own money if you have £100k+ laying around, lend the company the money to invest in assets, either property or whatever. Then charge the company interest of up to 7% every year, never do repayment. That way you get a salary of £550 per month, in order to get your pension contribution sorted, the company pays you interest as your salary and because it is interest it is a tax deduction, using CT61? Win win?