3 Ways to Get Money Out of Your Limited Company as a UK Doctor — And the Tax on Each One
In this concise explainer, a doctor with nine years of experience running a limited company outlines the three primary methods UK doctors can use to extract money from their limited companies. The first method is claiming legitimate business expenses and benefits, which must be wholly and exclusively for the business according to HMRC rules; examples include medical equipment, staff costs, training, director’s life insurance, pension contributions, and a fully electric car used for work. The second method is taking dividends, which are paid from post‑corporation‑tax profit; the first £500 of dividends is tax‑free, with the remaining taxed at 10.75% (basic rate), 35.75% (higher rate), or 39.35% (additional rate) – rates that increased in April 2026. The third method is drawing a salary, taxed via PAYE with a personal allowance of £12,570, then 20% up to £50,270, 40% up to £125,000, and 45% above that. The speaker invites viewers to request a compiled list of allowable limited‑company expenses, offering it to doctors who comment. The video’s purpose is to clarify these extraction routes, their tax implications, and to provide practical resources for doctors managing their own companies.
