Who has the broadest shoulders?

Posted on March 16, 2026 Updated on March 16, 2026

What about Director/Shareholders?

Let’s keep it simple. The same £50k of taxable profits with a sole director shareholder extracting that in the most tax efficient way possible.

https://lnkd.in/e5ktvYhb

We’ll compare that with “working people” – a phrase used five times in the budget speech. That person was left with £3,293.30 per month.

Here goes…
The typical advice given by most accountants would be to take a nominal salary of £12,570 and the rest in dividends. Dividends are a distribution of profits after tax. So before the dividend is paid, corporation tax is deducted of at least 19%. £50,000 less £12,570 is £37,430 taxed at 19% leaves £30,318.30 as taxable dividend income. This tax year (2025/26) that will be taxed at 8.75% leaving a monthly take home pay of £3,352.95. Less than £60 per month more than the “working person”.

Because their broader shoulders can take it, in 2026/27 the basic dividend rate will be 10.75, meaning take home pay is reduced to £3,302.42 – less than £10 better off

As an aside, for those with an income in excess of £125k there has been no increase in the additional rate dividend tax – perhaps their shoulders are not as broad.

Who’s being Targeted?

Posted on March 16, 2026 Updated on March 16, 2026

“Growth is the engine that carries every one of our ambitions forward.
Through Stability, Investment and Reform – The platform from which British ambition can finally get moving again. Because growth doesn’t just appear out of thin air. It is built – patiently, and stubbornly, by the people who take risks, By founders who bet their savings on an idea, By firms breaking into new markets, developing new technologies, creating new jobs and new opportunities, By the men and the women who work hard every day in all parts of our country.
Our job is not to watch from the sidelines, but to partner with them— backing them every step of the way. To match private enterprise with public ambition.” https://lnkd.in/ex2SWvti

Thus began the budget speech last year. These were then the only people to get a direct tax rate increase. Dividend tax for basic and higher rate tax payers receiving a 2% increase. Business asset disposal relief raised from 10% to 14% this year and 18% from April

Just saying.