Director's Remuneration Planning
We help Cardiff business owners pay themselves the smart way. Through director's remuneration planning, we balance salary, dividends, and other benefits to keep more of what you earn while staying fully compliant with HMRC.
What we cover
Director's remuneration planning touches every part of how you take money from your business. We look at the full picture to build a strategy that works for you.
Salary & Dividend Mix
Finding the right balance between PAYE salary and dividend payments to minimise National Insurance and income tax.
Pension Contributions
Using employer pension contributions to reduce corporation tax and build long-term wealth tax-efficiently.
Spouse & Family Planning
Structuring remuneration across multiple directors or shareholders to make the most of available allowances.
Year-Round Monitoring
Keeping your strategy up to date as tax thresholds, company performance, and personal circumstances change.
How we help you pay yourself efficiently
If you run a limited company in Cardiff or across South Wales, how you pay yourself matters. Take too much as salary and you'll pay unnecessary National Insurance. Rely only on dividends and you might miss out on state pension credits or tax-free childcare eligibility. Director's remuneration planning means finding the mix that works for your circumstances, your company's performance, and the current tax year's rules.
We start by reviewing your existing setup: what you're paying yourself now, whether you have a spouse or family members involved in the business, and what other income or benefits you need to factor in. Then we design a remuneration strategy tailored to you. That might mean a low salary around the personal allowance threshold, dividends from post-tax profits, employer pension contributions, or interest on a director's loan account.
For many owner-managed businesses, a well-structured plan unlocks up to £19,070 in tax-free income per director each year.
More information
The tax landscape changes every April, and what worked last year might not be optimal now. For 2025/26, the employment allowance has risen to £10,500, the personal allowance sits at £12,570, and National Insurance thresholds continue to shift. We keep on top of these changes so you don't have to. Our plans are built around the latest rules, and we'll flag opportunities like R&D relief or adjustments for new reporting requirements before they affect you.
Many of the business owners we work with in Cardiff are sole directors or run companies with their partner. Your personal circumstances shape the strategy. If you need a minimum salary to qualify for statutory benefits like maternity pay or tax-free childcare, we factor that in. If your company is profitable and you want to extract funds without triggering higher-rate tax, we'll model the most efficient route. If cash flow is tight, we'll recommend timing that keeps the company healthy while meeting your personal needs.
What a typical plan includes
- Recommended salary level, usually between £5,000 and £12,570 depending on your situation
- Dividend strategy based on available profits and your marginal tax rate
- Pension contribution targets to reduce corporation tax and build retirement savings
- Timing guidance for payments across the tax year
- Risk assessment and compliance checks to keep you safely within HMRC rules
We present everything in plain English at a face-to-face or video meeting. You'll leave with a clear action plan, recommended amounts, and an understanding of why each element works the way it does. Then we monitor it throughout the year. If your profits shift, your personal tax band changes, or HMRC announces new thresholds, we adjust the strategy and let you know.
Remuneration planning isn't a one-off exercise. It's an ongoing partnership that adapts as your business and the tax rules evolve.
Whether you're a builder in Pontypridd, a salon owner in Penarth, or a consultant in the city centre, the principles are the same: pay yourself what you need, in the most tax-efficient way possible, without falling foul of compliance. We've been doing this for owner-managed businesses across South Wales for nearly a decade, and we've seen the difference a good plan makes. It's not about aggressive avoidance. It's about using the allowances and reliefs you're entitled to, structured in a way that makes sense for you and your company.
Worth considering
Mergers & Acquisitions Support
Clear M&A support for Cardiff and South Wales owners buying or selling a business, with financial due diligence, deal structure advice, and completion support.
Mergers & Acquisitions Support→Business Restructuring Advice
Clear business restructuring advice to relieve cash flow pressure, manage debts and agree a step-by-step plan covering costs, pricing, staffing and structure.
Business Restructuring Advice→Profit Improvement Planning
A practical profit improvement plan for Cardiff and South Wales businesses, with clear targets, cash flow actions and regular reviews to keep you on track.
Profit Improvement Planning→Management Reporting & KPI Dashboards
Clear monthly management reporting and KPI dashboards showing sales, margins, cash and VAT position, with notes on what changed and what to do next each month.
Management Reporting & KPI Dashboards→Before you book
These are the questions we hear most often from Cardiff business owners looking to optimise how they pay themselves.
How much can I really take tax-free as a director?
What's the difference between salary and dividends?
Do I need to change how I pay myself every year?
Will this work if my spouse is also a director?
Can you help if I'm a sole director with no other shareholders?
How much does director's remuneration planning cost?
What happens if HMRC queries my remuneration?
Do you work with businesses outside Cardiff?
Let's talk about paying yourself smarter
Book a free consultation and we'll walk you through what a tailored remuneration plan could save you this tax year.
Book a free consultation