2026-27 · Tax Blog
Director Tax Articles
In-depth analysis, practical guides, and worked examples for UK limited company directors. All updated for 2026-27.
The Optimal Salary and Dividend Split for Directors in 2026-27
With employer NI now at 15% from a £5,000 threshold, the optimal salary/dividend split has shifted. We model the numbers for three profit levels.
Read articleEmployer NI Changes April 2025: The Full Impact for Solo Directors
The employer NI rate rose to 15% and threshold dropped to £5,000 in April 2025. Here's exactly what it costs directors and how to mitigate it.
Pension vs Dividends: Which Is Better for Directors in 2026-27?
Once you've filled the basic rate band with dividends, should additional profits go into a pension or be extracted as higher-rate dividends? The maths explained.
The £100k Trap: How Directors Can Avoid the 60% Marginal Tax Rate
Income above £100,000 triggers a personal allowance taper creating a 60% effective rate. Here are the four strategies directors use to avoid it.
IR35 Reform: What Every Contractor Needs to Know in 2026
The off-payroll working rules are now embedded across the public and private sector. Here's how to protect your outside-IR35 status and what to do if caught inside.
Is the VAT Flat Rate Scheme Still Worth It for IT Contractors in 2026?
The limited cost trader rule means most IT contractors pay 16.5% FRS — making the scheme barely profitable. Here's the honest analysis.
Corporation Tax Marginal Relief: Planning Around the 26.5% Band
Profits between £50,000 and £250,000 face a 26.5% effective marginal rate — higher than the main rate. Here's how to plan around it.
Home Office Tax Claim for Directors 2026-27: Complete Guide
The flat rate vs apportioned method — which saves more, the CGT risk to avoid, and a worked example for a director working from a 4-bedroom home.
Limited Company Expenses: What You Can and Cannot Claim in 2026-27
The definitive list of allowable and disallowable expenses for UK limited companies — with HMRC rule references and practical tips for directors.
Making Tax Digital for Income Tax: What Directors Need to Do Before April 2026
MTD ITSA affects directors with self-employment or property income above £50,000 from April 2026. The deadlines, the software, and whether you're in scope.
Calculate your tax position
Use our interactive calculators to apply these insights to your own numbers.
Open calculators