Why? The usual suspects
• PAYE income tax and NI chewing up chunks of salary
• 25% corporation tax slicing profits
• Dividend tax biting up to 33.75%
• No access to family tax bands
The result?
For every £100,000 he took home, it cost the business £157,000. That’s £57,000 evaporating into HMRC’s coffers. Less cash for hiring, growth, and any real long-term planning.
The Shift: From Salary & Dividends to SAFO
Mark didn’t want to cut staff or work longer hours. So we built him a Self-Administered Family Office (SAFO) around a bespoke Family Investment Company (FIC) with alphabet shares.
Here’s what we did:
• Paid Mark and his partner £12,570 each as tax-free salary
• Issued 5% voting shares to his partner
• Allocated £37,700 each in dividends taxed at just 8.75%
• Retained full control with custom Articles and share class rules
The Results
| Before SAFO | After SAFO | |
|---|---|---|
| Net to Family | £100,000 | £100,000 |
| Cost to Company | £157,060 | £122,567 |
| Annual Savings | - | £34,493 |
| Effective Tax Rate | 36.3% | 22.7% |
Mark put the extra cash straight back into the business:
• Hiring key staff
• Scaling marketing
• Planning a 0% tax exit using SSE
• Structuring 14% CGT redemptions via Freezer Shares
“The problem wasn’t the business. It was how I paid myself.
The SAFO gave me control, tax efficiency, and breathing room to grow.”
If you’re pulling £100,000+ from your business and feeling the tax squeeze, you don’t need a £10m family office.
You just need the right structure.
Get Your SAFO Starter Guide
Download the SAFO Starter Guide
Or book a free 1:1 strategy session
