In short: Three straightforward, legitimate moves for UK agency owners this tax year: a salary set to your allowance, tax-free company interest, and your ISA allowance.
If you run a marketing agency and want to save tax in 2026/27, a handful of ordinary moves do more than most people expect. None of these are clever schemes. They are the everyday allowances that founders keep meaning to use and never quite get round to.
First, consider keeping your salary at £12,570. That amount is covered by your personal allowance, so there is no income tax on it. If you have other employees on the payroll, there is typically no National Insurance to pay on it either. It is the simplest layer of a sensible profit-extraction plan.
Second, £1,000 of company interest. If your company owes you money because you have lent it cash, you can pay yourself interest on that loan. The first £1,000 is tax-free if you are a basic rate taxpayer. It is a small, legitimate route that founders routinely forget they have.
Third, your £20,000 tax-free ISA. If you have spare cash sitting around, an ISA lets you earn interest and dividends tax-free, up to £20,000 a year, with everything made inside it tax-free. Worth noting: the rules are set to change from April 2027, with tighter restrictions on how much you can put in, so it is worth making the most of the current allowance while it lasts.
Rules and thresholds can change, so always check the current position before acting, and take advice on how these fit your own numbers. Used together and reviewed each year, the ordinary allowances quietly add up to real money kept.
Common questions
Many founders set a salary around £12,570, the amount covered by the personal allowance, so there is no income tax on it, and often no National Insurance where other employees are on the payroll. It is a starting point, not a rule; the right figure depends on your wider profit-extraction plan.
If you have lent your company money, it can pay you interest on that loan. For a basic rate taxpayer the first £1,000 can be tax-free through the savings allowance. It is a small, legitimate route founders often forget, and whether it fits depends on your other income.
You can pay up to £20,000 across your ISAs in the tax year, and interest and dividends earned inside an ISA are tax-free. For spare cash sitting outside a tax wrapper, using the allowance shelters the growth on it from both dividend tax and capital gains tax.
The rules are set to change from April 2027, with tighter restrictions expected on how much can be paid in. Because allowances are reviewed each year, the sensible move is to use this year's allowance while it stands rather than assume it will look the same next year.
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Simon Jacobs is a Chartered Tax Adviser (CTA · ACA) and ex-PwC, founder of SRJ International. He advises founder-led UK marketing agencies on tax, profit extraction and exit. Read his full profile →