Earn

Running a company, working for yourself, and income that does not arrive on the same day each month.

8 sourced figuresnext checked 1 March 2027Writing held

Most writing about building wealth assumes a salary that lands on the 28th. A great deal of British wealth is not built that way — it is built by people who invoice, who take dividends, who have a good year and then a thin one. The rules that govern that money are different, they interact badly with each other, and almost nobody explains the interactions.

What this is not

This is about the money your work produces and what the rules do to it. It is not about how to run a business, hire people or sell anything.

The figures underneath

What this subject rests on

Corporation tax on company profits.

19% up to £50,000, 25% above £250,000, with marginal relief in between

GOV.UK, Corporation Tax rates · Current rates · checked again by 2027-03-01

Both thresholds are divided by the number of associated companies, so a second company can raise the rate on the first.

The turnover at which VAT registration becomes compulsory.

£90,000 of taxable turnover in the last 12 months, or expected in the next 30 days

GOV.UK, When to register for VAT · Current threshold · checked again by 2027-03-01

Rolling 12 months, not your accounting year.

Employer National Insurance and the threshold it starts at.

15% on earnings above a secondary threshold of £5,000 a year

GOV.UK, Rates and thresholds for employers · 6 April 2026 to 5 April 2027 · checked again by 2027-03-01

A director paying themselves a salary pays this on top of income tax and employee NI.

The reduction in an employer's annual National Insurance bill.

£10,500

GOV.UK, Rates and thresholds for employers · 2026 to 2027 tax year · checked again by 2027-03-01

Not available to a company whose only employee is a single director.

Dividend income you can receive before tax.

£500

GOV.UK, Tax on dividends · 2026 to 2027 tax year · checked again by 2027-03-01

Tax rates on dividends above the allowance.

Basic 10.75%, higher 35.75%, additional 39.35%

GOV.UK, Tax on dividends · 6 April 2026 to 5 April 2027 · checked again by 2027-03-01

The basic and higher rates rose for 2026 to 2027. Any salary-versus-dividend sum built on the old numbers is out of date.

National Insurance for the self-employed.

Class 4 at 6% on profits from £12,570 to £50,270 and 2% above; Class 2 treated as paid once profits reach £7,105

GOV.UK, Self-employed National Insurance rates · 2026 to 2027 tax year · checked again by 2027-03-01

Below £7,105 you can pay voluntary Class 2 to protect your State Pension record.

The reduced capital gains rate when selling a business.

18% on qualifying disposals from 6 April 2026, up from 14% in 2025 to 2026 and 10% before that

GOV.UK, Business Asset Disposal Relief · Disposals from 6 April 2026 · checked again by 2027-03-01

The rate has risen twice in two years. Any exit plan built on 10% is out of date.

Written so far

Writing held

The 8 figures above are registered, sourced and dated, and this subject’s boundary is set. The writing follows — and nothing ships without a named reviewer, so we publish fewer than two dozen pieces a year on purpose.

The Swealth letter

One letter a week, on Thursday

Plain writing about British money, and the UK Wealth Blueprint to start with.