How Rich Business Owners Legally Pay Less Tax

UK tax is insane.

According to the Office for Budget Responsibility in 2024, the UK hit its highest tax burden since World War 2.

Yeah. The most tax-heavy we’ve been in nearly 80 years.

And most people they just pay it like robots.

Not me though.

I started learning this early. I’m 15, I run a business

I’m not some accountant or guru selling a course either I just got obsessed with the game.

Here’s exactly how rich business owners LEGALLY pay less tax and how I’m setting my business up to do the same.

1. Business Expenses = Your Legal Tax Shield

Anything you need to run your business tools, websites, ads, subscriptions you can subtract from your profits before tax.

Example:

You earn £1,000 in your business.

You spent £400 on business tools, websites, ads, whatever.

You only pay tax on £600, not the full £1,000.

That’s called “expenses.”

Most people skip this because they’re lazy with tracking.

2. Salary vs Dividends = Rich People’s Secret Trick

Here’s what smart business owners do:

They don’t take all their money as salary.

They pay themselves like this:

• Small salary (low tax, keeps you legal)

• The rest as dividends which are taxed at a much lower rate than normal income.

Simple. Legal. Effective.

This is why rich business owners legally pay less tax than employees making the same amount.

3. The £1,000 Trading Allowance (The Beginner Hack)

If you’re new to business or side hustles, the UK gives you a free pass:

You can make up to £1,000 a year from self-employment no tax, no forms.

It’s called the trading allowance.

Most people don’t even know this exists. It’s literally free money.

4. Capital Allowances = The Big Boy Tax Move

If you buy expensive gear for your business like a laptop or camera you can sometimes deduct the full cost from your profits.

This is called capital allowances.

Basically, you write it off, pay less tax, and keep the gear.

Why They Don’t Teach You This:

Because they benefit from you staying clueless.

They want you to:

• Get taxed hard

• Never question it

• Stay quiet about it

But here’s the truth nobody tells you:

The tax system isn’t there to punish you.

It’s there to reward business owners who know the rules.

The people who never learn this stay broke.

This isn’t hard.

You just have to care enough to learn.

Now you know what the rich know.

What you do with it that’s your choice

Talk Soon

Yousaf