Resources to help you pay less tax and make better decisions
Free calculators, guides and answers — built for UK limited company directors, SME owners and property investors. No jargon. No sign-up required for the calculators. Just useful tools that give you clarity.
All three calculators use 2026/27 HMRC rates and update live as you type. No sign-up required — just enter your numbers and see your results instantly.
Salary vs Dividends Calculator
Find the most tax-efficient salary and dividend split for your limited company. Includes income tax band breakdown, NI, corporation tax and marginal relief. Defaults to the optimal £12,570 salary structure.
See exactly how much tax you'd pay under each structure and whether incorporating is worth it. Works for both trading income and landlord income. Includes a smart flag on financial viability.
See the true cost of hiring — including employer NI, pension and what the employee actually takes home. Works for annual salary or hourly rate. Supports full or part-year calculations.
Practical, plain-English guides written for UK business owners and property investors. Enter your email and we'll send it straight to your inbox.
1
The Limited Company Director's Tax Guide 2026/27
Optimal salary, dividend allowance, corporation tax rates and year-end actions — everything you need in one place.
2
10 Ways SME Owners Overpay Tax (And How To Stop)
The most common tax mistakes made by UK business owners — and the simple fixes that could save you thousands.
3
10 Ways Property Investors Overpay Tax (And How To Stop)
Allowable expenses, mortgage interest rules, structure decisions and timing — the most costly mistakes landlords make.
4
The Year-End Tax Planning Checklist
What to do in the 3 months before your year end to reduce your tax bill. Works for limited companies and sole traders.
5
Should I Incorporate? The Decision Framework
The 5 key questions to answer before going Ltd — covering tax, mortgages, accounting costs, IR35 and timing.
6
Making Tax Digital — What Every SME Needs to Know
What's changing, when it applies to you and exactly what you need to do to stay compliant without the stress.
COMMON QUESTIONS
Your questions answered
The questions we get asked most often — answered in plain English.
For most directors, a low salary of £12,570 (the personal allowance) combined with dividends for the remainder is the most tax-efficient approach. This avoids income tax on the salary, minimises National Insurance, and uses the lower dividend tax rates for the rest. However the optimal split depends on your profit level, other income and personal circumstances. Use our Salary vs Dividends Calculator to see the figures for your situation.
As a rough guide, the tax saving from incorporating typically starts to outweigh the additional accounting costs somewhere between £30,000 and £50,000 profit — but this varies significantly based on how much you extract, your other income and your circumstances. Use our Sole Trader vs Ltd Calculator to see the specific saving for your profit level.
On top of gross salary, you pay employer National Insurance at 15% on wages above £5,000 and a minimum 3% employer pension contribution. On a £30,000 salary this adds approximately £4,650 — bringing the total cost to around £34,650. Use our PAYE & Staff Cost Calculator to see the exact figures for any salary or hourly rate.
Making Tax Digital (MTD) is HMRC's programme to move tax records and submissions online using compatible software. MTD for VAT is already mandatory. MTD for Income Tax will apply to sole traders and landlords with income above £50,000 from April 2026, and above £30,000 from April 2027. Download our free MTD guide for a full breakdown of what applies to you and when.
Sometimes — but it depends on your situation. Holding property in a limited company can be tax-efficient for higher-rate taxpayers who reinvest profits rather than extract them all. However it involves additional stamp duty on transfer, different mortgage products (often at higher rates), and more complex accounting. It's a decision that needs careful planning specific to your portfolio and goals.
Companies with profits between £50,000 and £250,000 pay corporation tax at an effective rate that gradually increases from 19% to 25% — rather than jumping straight to 25%. This is called marginal relief. The exact HMRC formula is applied in our calculators so the figures shown are as accurate as possible for your profit level.
Look for someone who is qualified (CIMA, ACA, ACCA or AAT), who specialises in your type of business, and who is proactive rather than reactive — meaning they give you advice before deadlines, not just after. At Heights Accountancy, Bjorgvin is CIMA and AAT qualified, works exclusively with SMEs and property investors, and charges a fixed fee agreed on the first call. Book a free 20-minute call to see if we're the right fit.
GET STARTED
Still have questions? Let's talk.
Pay less tax. Make more money. Free up more time.
Book a free 20-minute call with Bjorgvin. We'll answer your questions, review your situation and agree a fixed fee — on the call, not after it.
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