Tax Planning for Directors | Barton Accountancy

Director tax planning

Tax planning works before year-end.
Not after.

Most company directors discover what tax they owe in the few months after year-end, when their accountant prepares the final accounts. By then, every lever you could have pulled — pension contributions, dividend timing, salary changes, equipment purchases — is locked.

Proper tax planning happens three months before year-end, not three months after. We run the numbers in advance, flag the decisions that need making, and give you a clear list of what to do before the books close. Clients regularly save 5-10x our annual fee this way.

What we look at

The levers we pull.

Everything is included in your fixed monthly fee. No extras, no surprises.

Salary vs dividends

Most efficient split for your income level, reviewed every April when thresholds change.

Pension contributions

Employer pension is one of the biggest underused tax savings for directors.

Spouse planning

If your spouse is a shareholder or employee, there are legitimate ways to share the income tax burden.

Dividend allowances

£500 tax-free dividend allowance each year — make sure you use it.

Capital allowances

Electric vehicles, equipment, tech — full expensing where applicable.

Pre year-end review

Every client gets a planning call 2-3 months before year-end.

Sound familiar?

Most businesses don't have an accountant.
They have a filing service.

If any of these ring true, you're not getting what you should be.

01

You only hear from them at year-end

No check-ins, no planning, no conversation. Just a bill and a set of accounts you don't fully understand.

02

You're never sure where you stand

Your numbers are months out of date. You're making decisions based on gut feel, not real figures.

03

Surprise invoices keep landing

An email here, a phone call there — and suddenly your bill is twice what you expected. No one told you.

Common questions

Things people ask us.

How much tax can I save with proper planning?

It depends entirely on your profit level and current setup. For a typical £80-150k profit limited company, we usually find £3-10k in legitimate annual tax savings just from reviewing salary, dividends, pensions and capital allowances. For higher-profit companies, the numbers get bigger.

When should I be thinking about tax planning?

Ideally, 2-3 months before your year end. Some decisions take time to implement (pensions, share restructuring). For emergency planning in the last month, there's still lots we can do — but earlier is always better.

Is pension the best tax shelter for directors?

Often, yes. Employer pension contributions are deductible for corporation tax (saving 19-25%) and grow tax-free until retirement. You can contribute up to £60,000 per year (the annual allowance) plus unused allowance from the previous 3 years. For higher-rate directors, it's usually the single best tax-efficient move.

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