Peter Rayney examines owner-managers’ cash extraction for 2025/26.
On a sunny Newcastle morning, Vera was reviewing her company’s January 2025 management accounts. Vera was the sole director and 100% shareholder of Land Rovers 2U Ltd. The business was on course for a healthy pre-tax profit of around £550,000 for the year ended 31 March 2025. She had been planning to pay herself a substantial ‘bonus’ before the year end.
However, following the recent tax and National Insurance contributions (NICs) changes, she was now a little perplexed and did not know whether it was best to pay herself a dividend or a bonus.
A trusted adviser!
As always in times like these, she decided to ring her trusted accountant, Kenny:
“Hi Kenny, as I told you last week, we are having a really good
