Corporate tax rates are now largely settled, with the main rate at 25% and small profits rate at 19%. However, the focus has shifted from rate changes to profit extraction and compliance.
With higher dividend tax rates from April 2026, the gap between corporate and personal taxation continues to widen. This puts more emphasis on how business owners extract profits—whether through salary, dividends, or pension contributions.
At the same time, HMRC is increasing scrutiny on smaller businesses, particularly around close company structures and director remuneration.
Business owners should revisit profit extraction strategies and ensure alignment between corporate profits and personal tax efficiency.
Contact a member of our team today to discuss how this may impact you.