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Most Owner-Managers I speak to haven't been told about this yet. From 6th April 2026, Asset Income Tax increases by 2% across all bands. If you extract largely through dividends — and most OMs do — your personal net income will fall in Tax Year 26/27. Not because your company is spending less on you. Not because you've done anything wrong. Simply because the extraction route you're using is about to get more expensive. When you model this properly — holding Net Cost to Company constant — the gap becomes stark: → Dividend net income drops between TYE26 and TYE27 → Interest net income in TYE27 remains significantly higher at every level → The bigger your extraction, the bigger the gap becomes The kicker? You only need Owner's Loan Capital to qualify for interest-based extraction. This isn't a niche strategy for high earners. It's a structural shift that applies across the board — and the window to act before April is closing. 📮 Same company spend. Lower dividend take-home. The taxman didn't even have to ask twice. ✅ Has your accountant talked to you about the April 2026 change yet? Drop a comment — I'm curious how many OMs have already been briefed on this. #OwnerManagers #TaxPlanning #DividendTax InterestIncome #NetIncome #BusinessOwners #SME #LoanCapital

Most accountants recommend dividends. Almost none of them show you what happens when you model all three extraction routes side by side. I've run this analysis hundreds of times. The result is the same every time. When you hold Net Cost to Company (Net CTC) constant — so the company spends exactly the same in each scenario — three things become immediately visible: 💸 Employee salary extraction drags hardest 📉 Dividends look better... until you model them properly 📈 Interest income on Owner-Manager (OM) Loan Capital consistently outperforms both Not once. Not at one income level. Across every strategy we model — £50k, £75k, £100k, £150k, £250k — interest delivers higher net income for the same company cost, every single time. It's worth being clear about why — because the answer isn't what most people expect. At a personal level, savings income tax rates are actually higher than dividend rates. Interest doesn't win there. It wins at the corporate level: interest is a deductible business expense, paid before corporation tax is calculated. That 25% relief upstream, when modelled alongside personal tax, pension and Net CTC together, consistently outweighs the personal rate gap. The integrated model is doing the work — not the interest rate in isolation. The reason most OMs never see this analysis? It requires modelling that sits outside traditional accountancy workflows. Most firms aren't set up to run it. So it doesn't get shown. We use a metric called the Tax Leakage Ratio: Net Tax ÷ Net Cost to Company. It tells you precisely how efficiently income is being extracted. The lower the ratio, the better the structure. Once you see the comparison, you can't unsee it. 📮 If your adviser has never shown you this comparison, it's not because the data doesn't exist. It's because the model does. ✅ Follow for the next post — where I'll show exactly what the April 2026 tax change does to this picture. #OwnerManagers #TaxEfficiency #IncomeExtraction #UKTax #FinancialStrategy #WealthEngineering

I had a client come to me convinced he'd nailed his profit extraction strategy. He'd gone dividend-heavy on his accountant's advice. Reasonable income. Looked clean on paper. We ran it through our model and found he was leaving over £18,000 a year on the table. Not through anything exotic. Not through any scheme. Just through asking the wrong question. Most Owner-Managers ask: "Should I take salary or dividends?" That's not the question. The real question is: 👉 For every £1 my company spends on me — how much do I actually keep? Once you anchor everything to Net Cost to Company (NCTC), the comparison becomes honest for the first time. Same company spend. Different routes. Wildly different take-home. This is the foundation of OM Net Income Optimisation — and over the next few weeks, I'm going to walk through why it changes everything. Starting with the thing most tax advisers never model. 📮 The taxman doesn't care what question you're asking. But your net income does. ✅ Follow along — the next post in this series reveals the comparison your accountant has probably never shown you. #OwnerManagers #TaxEfficiency #IncomeExtraction #UKTax #FinancialStrategy #SME

Many owner‑managers default to dividends without reviewing smarter extraction strategies. With the right mix of interest, dividends and salary, net income can improve, without increasing what the company pays out.

Still relying mainly on dividends to pay yourself? Some owner-managers use an owner loan and interest to improve personal net income, while keeping the company’s total outlay unchanged.