How money gets from the company to you, and what each route costs. These guides cover the salary and dividend split, how dividends are taxed once they leave the company, and why an employer pension contribution is taxed differently from either. They are about the order of the decisions as much as the numbers.
The library
5 guides on pension and dividends.
Your company can pay up to £60,000 into your pension in 2026/27, plus any unused allowance from the previous three tax years, so up to £240,000 if you contributed nothing and were a scheme member throughout. The taper cuts the allowance only where threshold income also exceeds £200,000, falling to a £10,000 floor.
4 min read
An employer pension contribution from your company is the single largest tax-efficient extraction route open to a PSC director in 2026/27, beating salary and dividends comfortably. This guide explains the £60,000 annual allowance, the taper for high earners, three-year carry-forward, the money purchase annual allowance trap and why the employer route beats a personal contribution.
15 min read
Once you know an employer pension contribution is your biggest tax-efficient lever as a PSC director, the next question is which scheme to put it into. This guide explains the three main pension types available to contractors, why SIPPs are a common choice for limited company directors, what factors to weigh when comparing providers, and where the boundary sits between accounting advice and regulated financial advice.
13 min read
An employer pension contribution from your personal service company is the most tax-efficient extraction route available to a PSC director. It reduces corporation tax, carries no National Insurance on either side, and is not taxed as income when it enters the pension. This page explains the mechanics, the CT saving arithmetic, and why the employer route beats the personal contribution route for most contractors.
12 min read
Finance Act 2026 raised the ordinary and upper dividend rates from 6 April 2026, pushing the rates contractors face to 10.75%, 35.75% and 39.35% in 2026/27. This guide explains how dividend tax works in practice, how dividends sit on top of your other income, and the planning options available to keep the bill as low as legally possible.
12 min read
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Salary, dividends and employer pension contributions come out of the same pot and are taxed in completely different ways. We model the split against your own profits so you can see what each pound costs before you move it.
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