Medics Money podcast Ep 287: Deep Dive into Tax Strategies: Limited Companies Explained
Sep 2, 2025
Steve Nichols, from Nichols Specialist Medical Accountants in London, provides expert insights specifically for medical professionals. He discusses the advantages of establishing a limited company for tax planning, emphasizing flexibility in compensation through dividends and loans. Nichols clarifies the strategic benefits of managing mortgages and navigating tax thresholds. The conversation includes tailored financial advice for physicians and the nuances of withdrawing funds tax-efficiently, all while highlighting the importance of compliance in financial planning.
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Flexibility Is The Core Benefit
- Limited companies are valuable because they offer flexibility in who, when and how you get paid.
- That flexibility enables tax planning options unavailable to fixed monthly PAYE salaries.
Choose Extraction Method Deliberately
- Use a mix of salary, dividends, pension contributions, director's loans or capital distributions to extract funds tax-efficiently.
- Choose methods based on commerciality and your personal tax thresholds to minimise overall tax.
Use Company Income To Avoid The £100k Cliff
- Consider routing modest private income into a company to keep NHS salary below the £100k cliff edge.
- Pay a commercial salary to a non-working spouse from the company to preserve tax-free childcare and reduce marginal rates.