2 articles tagged with Limited Company Tax.
A common 2026/27 strategy is a small director salary plus dividends. The GBP 500 dividend allowance and 10.75% basic dividend rate shape the split, and a salary around the GBP 12,570 Personal Allowance keeps income tax at zero.
When two people run a business, the structure decides how profit is taxed. Compare a general partnership using two GBP 12,570 allowances against a limited company paying Corporation Tax at 19% to 25% and dividends taxed from 10.75%.