Research and analysis

Understanding the population of Company Owner Managers

Published 17 July 2025

This research was commissioned in March 2023, under the Conservative government (2010 to 2024), and completed in October 2024.

Prepared by Ipsos for HM Revenue and Customs

Jayesh Shah, Oliver Fenton and Grace Clarke (Ipsos)

Research report number: 784

October 2024

The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue and Customs

Glossary

Term	Definition
Company Owner Manager (COM)	For the purposes of this survey, a Company Owner Manager (COM) is both a director and shareholder of a company
Corporation Tax	Corporation Tax is paid by companies on profits, investments, and asset gains.
Director	An individual who is formally registered as being a company director with Companies House and legally responsible for running the company.
Dividend	A dividend is a payment a company can make to shareholders if it has made a profit. Dividend income above the dividend allowance is subject to Income Tax.
Financial year	The UK financial year for government accounting that runs from 1 April to 31 March the following year.
Personal Service Company (PSC)	For the purposes of this survey, a Personal Service Company (PSC) is a limited company which has been set up to provide the services of a contractor, who is usually the sole director and shareholder of the company. In the survey, Company Owner Managers were asked whether they considered their company to be a PSC, based on this definition.
Remuneration	The money or non-cash equivalent provided to an individual for their work or services.
Self-Assessment	The system HMRC uses to collect Income Tax that is not automatically deducted from wages, pensions and savings. For example, a Company Owner Manager may be required to file a Self Assessment tax return to declare any dividend income.
Shareholder	An individual who owns or part-owns the voting/ordinary shares in a company.
Tax year	The tax year starts on 6 April and ends on 5 April the following year.

1. Executive summary

In March 2023, HM Revenue and Customs (HMRC) commissioned Ipsos to carry out a survey to improve understanding of the Company Owner Manager population. For this study, a Company Owner Manager (COM) was defined as an individual who is both a director and shareholder of a company.

The 20 minute survey was completed by 855 COMs between October 2023 and April 2024, either online or by telephone. To achieve this, HMRC supplied Ipsos with a randomly selected stratified sample of UK company records from Corporation Tax data. Ipsos sampled companies on a random probability basis, inviting a director to complete basic screening questions to ensure only those who were both a director and a shareholder (a COM) completed the full survey.

The aims of this survey were to:

• identify the prevalence of companies with at least one COM in the UK
• understand the size and sector profile of companies with at least one COM
• understand how COMs were remunerated for their work in the company, and reasons behind the chosen approaches

The results have been weighted by company size and sector to be representative of the original UK company population the sample was drawn from.

1.1. Companies with at least one COM

This survey estimated that almost 9 in 10 (88%) UK companies had at least one COM. This represents approximately 1,848,000 companies, based on a population of 2.1 million actively trading companies in the Department of Business and Trade’s latest Business Population Estimates. Looking into this prevalence in more detail shows that 39% of UK companies had only one COM, while 49% had two or more COMs.

1.2. Company finances

The average (median) turnover of companies with at least one COM in the financial year 2022 to 2023 was between £250,000 to £500,000. The vast majority (95%) of this turnover came from normal day-to-day trading rather than investments. The average (median) profit made by companies with a COM in the financial year 2022 to 2023 was between £50,000 to £85,000. Two in three (68%) companies with at least one COM that made a profit in the financial year 2022 to 2023 decided to retain at least some of their earnings in the company.

The most common way that the company retained earnings was by shareholders taking no dividend income (35%) or less dividend income (33%). Almost half of companies (46%) that retained profits in the financial year 2022 to 2023 said they did so for the financial security of the company.

1.3. Remuneration

Ninety percent of COMs were remunerated for their work in the company in the financial year 2022 to 2023. The two most common forms of remuneration among COMs were through salary (80%) or dividends (63%), with over half of COMs (56%) paid in both salary and dividends in the financial year 2022 to 2023. The median amount of income received by COMs from their company in the financial year 2022 to 2023 was £31,420.

On average, COMs received £15,710 from their company in salary/bonuses and £12,568 from their company in dividends. The most common reason provided for choosing a particular remuneration approach was due to habit: 40% of companies remunerated COMs in the way they did because they had ‘historically’ done so.

Only a minority (8%) of companies chose not to remunerate their COMs in the financial year 2022 to 2023. Around one in four (23%) of those who did not remunerate said it was because they did not make sufficient profit.

Approximately one in three COMs (29%) were also a COM at another company to the one sampled for this survey. Of COMs who were also a COM at another company, only half (51%) received any remuneration from the other company, where 27% received dividends and 24% received a salary from the other company.

One in three COMs (29%) received income unrelated to their work as a COM in any company. The most common form was rental income (38%).

1.4. Future expectations of COMs

Just under half of COMs (44%) expected their company’s turnover to increase in the next 12 months. Compared to this, only 13% of COMs expected turnover to decrease. However, a sizeable proportion, over a third (38%) of COMs, expected their company’s turnover to stay the same.

Around 6 in 10 COMs (63%) said they do not intend to change the way their company is being run in the next 5 years, while 16% said they intend to sell the company, and a further 8% stated they intended to wind up or fully liquidate the company.

Only a small minority of COMs (6%) said they increased the size of dividend payments to COMs in the financial year 2021 to 2022 ahead of planned tax increases.

2. Introduction

In March 2023, HM Revenue and Customs (HMRC) commissioned Ipsos to carry out a survey to improve understanding of the Company Owner Manager (COMs) population. The aim of this survey was to better understand the population of COMs and their companies, as well as their typical remuneration approaches and expectations for the next five years.

2.1. Background

The UK register of companies grew by 5.4% each year, from 2012 and 2013 to 2021 and 2022, according to Companies House statistics. In 2016, the OBR forecasted that this growth would largely be driven by an increase in companies with a sole director, meaning a substantial increase in the population of COMs. However, this population is diverse: it could include, for example, those on low or high incomes, those working across different sectors such as construction or legal services, companies with just one COM or more than one COM, or companies with 0 employees to companies with over 250 employees. Therefore, it is important for government to understand the different elements of business populations to understand the impact of policies and HMRCs engagement with customers.

There has been no recent research focused on this specific population. The Institute for Fiscal Studies conducted research profiling the business owner population in the UK in 2019 but it was based on administrative data from 2016 and earlier. Although HMRC commissioned Ipsos to conduct surveys on companies in 2014 and 2016 which relate to COMs, these are now outdated.

The survey defined a COM as an individual who was both a director and shareholder of a company:

• formally registered as being a company director with Companies House
• owned or part-owned the voting/ordinary shares in the company

2.2. Survey objectives

The survey’s objectives were as follows:

• identify the prevalence of companies with at least one COM in the UK
• understand the size and sector profile of companies with at least one COM
• understand how COMs were remunerated for their work in the company, and reasons behind the chosen approaches

2.3. Methodology

The fieldwork for this survey was multimode: respondents were able to complete the survey online via a link or by telephone with the Ipsos fieldwork team. It consisted of two pilot stages of fieldwork to test the survey script and sample quality (October 2023 to January 2024), followed by mainstage fieldwork (January to April 2024).

There is no official list of all COMs in the UK. HMRC cannot identify COMs in administrative data. To sample survey respondents, HMRC provided Ipsos with a random sample of UK companies from Corporation Tax data, stratified by size and sector. Ipsos enriched this sample using publicly available information on directors from Companies House, building a near complete picture of the directors within each company.

Ipsos randomly selected one of these directors to take part in the study, inviting the director to respond to basic screening questions to confirm the company had at least one COM and ensure only those who were both a director and a shareholder (a COM) completed the full survey. Companies with no COMs were screened out.

In the mainstage fieldwork, a total of 974 directors completed the screening questions. A total of 855 COMs completed the full survey.

The results were weighted to be representative of UK companies by company size and sector. The weighting and the underlying random probability methodology of the sample mean that the results from these interviews are statistically representative of and generalisable to the wider population of UK companies.

2.3.1. Naming conventions

Term	Definition
All UK companies	‘All UK companies’ refers to all companies sampled from HMRC data, including those that did not have any Company Owner Managers (COMs).
All companies with at least one COM	‘All companies with at least one COM’ refers to all companies sampled from HMRC data that had at least one COM.
The company, the sampled company, or the company surveyed	‘The company’, ‘the sampled company’ or ‘the company surveyed’ refers to the company sampled from HMRC data for this study.
Individual COM	The individual ‘COM’ refers to the individual COM that responded to this survey.
Other COMs	‘Other COMs’ refers to the COMs in the company that the individual COM reported on during the survey, but who we did not respond directly to the survey themselves.
Income from the company	‘Income from the company’ refers to income the COM received directly from the company sampled.
Other income	‘Other income’ refers to income received by the COM from other sources to the company sampled. This could be other COM-related income (from another company) or non-COM income (for example rental income).

2.3.2. Interpreting the data

For the purpose of this research a deliberately broad definition of COM was used to allow for the production of an overarching population estimate and to enable further, more granular analysis.

This report only comments on differences between subgroups of COMs who responded to the survey or companies with at least one COM where these differences are statistically significant (at the 95% level of confidence).

The statistical reliability of the survey, including the margins of error associated with the achieved overall and subgroup sample sizes, are covered in Annex B.

When reporting on averages, for example average company turnover, these are the median number not the mean. The rationale for reporting the median is to avoid extreme values at either end of the spectrum skewing the average result.

Some of the charts within this report do not total 100%. This is due to questions accepting multiple responses, or the exclusion of certain responses, such as ‘Don’t know’ or ‘Prefer not to say’, which were not deemed relevant to include in the chart.

For simplicity, results refer to the financial year 2022 to 2023 throughout – however it should be noted that the 19 COMs that completed the survey in October 2023 referred to the financial year 2021 to 2022 instead.

Financial year has been reported in the same format as was used in the questionnaire to maintain continuity; please note that this reporting format may differ from other publications concerning financial year.

3. Characteristics of companies with at least one COM

This chapter covers the prevalence of companies with at least one COM within the wider population of UK companies, as well as the size and sector profile. Key findings included in this chapter are:

• 88% of all UK companies had at least one COM
• 36% of COMs described their company as a Personal Service Company

3.1. Prevalence of companies with at least one COM

This survey estimated that almost 9 in 10 (88%) of UK companies had a COM. This was estimated as follows:

• out of the 974 directors surveyed,12% of directors surveyed said that there were no directors in their company that were also shareholders. Therefore, those companies contained no COMs
• the remaining 88% of directors surveyed said their company had at least one COM

Based on a population of 2.1m actively trading companies taken from the latest Business Population Estimates from the Department of Business and Trade, this means that there are approximately 1,848,000 companies in the UK that have at least one COM.

Eighty-eight percent of UK companies had a least one COM, comprising of 39% of UK companies that reported having only one COM and the remaining 49% that reported having two or more COMs.

3.2. Company characteristics

3.2.1. Number of employees

As figure 1 shows, the majority (90%) of companies with at least one COM were micro or small sized companies, based on the number of employees.

Figure 1: Number of UK employees at companies with at least one COM

Size	Percentage of companies with at least one COM
0 employees	8%
1 to 9 employees (micro)	58%
10 to 49 employees (small)	32%
50 to 249 employees (medium)	1%
250 or more employees (large)	0%

Question: How many employees, including yourself, does your company have in the UK? By this we mean people on your payroll paid through PAYE? Base: all companies with at least one COM (n=855).

There is a correlation between the number of COMs at a company and the size of the company, with larger businesses more likely to have more COMs than smaller businesses. Micro companies were significantly more likely to have 2 COMs (47%) than the average (39%), small companies were more likely to have 3 (15%), 4 (11%) or 5 (4%) COMs than the average (9%, 6% and 1% respectively). Finally medium sized companies were more likely to have 5 (12%) or 9 (3%) COMs than the average (1% and <1% respectively).

3.2.2. Sector of companies with at least one COM

Companies with at least one COM were most commonly in the Construction sector (16%), Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector (14%), and Professional, Scientific and Technical Activities sector (14%).

Figure 2: Sector

Sector	Percentage of companies with at least one COM
Agriculture, Forestry and Fishing	2%
Mining and Quarrying, Waste Management and Remediation Activities	1%
Manufacturing	4%
Construction	16%
Wholesale and Retail Trade Repair of Motor Vehicles and Motorcycles	14%
Transportation and Storage	2%
Accommodation and Food Service Activities	3%
Information and Communications	6%
Financial and Insurance Activities	2%
Real Estate Activities	2%
Professional, Scientific and Technical Activities	14%
Administrative and Support Service Activities	8%
Public administration, defence and compulsory social security	1%
Education	5%
Human Health and Social Work Activities	7%
Arts, Entertainment and Recreation	5%
Other Service Activities	6%
Other	3%

Question: Please could you describe the main product or service that your company sells, or what exactly is made or done in the organisation? Base: all companies with at least one COM (n=855).

3.2.3. Family

Thirty-nine percent of companies with at least one COM said there was at least one family among the COMs at their company. To clarify, this survey looked to understand the number of different families per company, rather than the number of people in each family group who were COMs at the company.

The definition of ‘family’ was broad, for example: a married couple, or a father and daughter would count as one family, and a married couple and their daughter would also count as one family. To be classed as a family there needed to be a minimum of two individuals in a family group.

Just under a third (31%) of companies with at least one COM reported there was just one family among the COMs at their company, compared to only 8% who said there was more than one family among the COMs at their company.

The following companies were significantly more likely to have reported that there was at least one family among the COMs at their company than the average (39%):

• small (47%) and medium (59%) companies
• companies with a turnover of £250,000 to less than £1 million (47%)
• COMs who were remunerated with dividends (69%)

3.2.4. Personal Service Companies (PSCs)

In the survey, COMs were asked whether their company was a Personal Service Company. Please note there is no legal definition of a Personal Service Company so participants responded based on the definition provided: “A personal service company is usually defined as a limited company which has been set up to provide the services of a contractor, who is usually the sole shareholder and company Director of the business.” One in three (36%) COMs said their company was a PSC, based on this definition. This gives a point estimate of 665,000 companies in the UK. In the remainder of this report, COMs who said their company was a PSC are referred to as ‘self-reported PSCs’.

Looking at the company characteristics of self-reported PSCs compared to the average company with at least one COM indicates very few differences. However, self-reported PSCs were more likely to be micro in size, with 65% of self-reported PSCs having 1 to 9 employees compared to 58% of all UK companies with at least one COM. It should also be noted that, although self-reported PSCs were more likely to be in the Construction sector (22% versus only 16% of all companies with a COM), self-reported PSCs were based in a wide range of other sectors – for example 14% of PSCs were in the Professional, Scientific and Technical Activities sector – albeit the prevalence of all other sectors is not any different for self-reported PSCs versus all companies with at least one COM. This lack of significant differences suggests little differentiation between self-reported PSCs and all companies with at least one COM.

3.3. Company incorporation

Three in four (77%) of companies with at least one COM had been incorporated for at least 10 years and only 1% reported that they had been incorporated for three years or less.

When asked why the company was incorporated, the most common reason COMs reported was protection through limited liability (36%) along with giving others confidence in the structure of the company (36%), as shown in Figure 3 below.

COMs in the Financial, Insurance and Real Estate Activities sector (for the purposes of analysis, this subgroup combines responses from COMs in Financial and Insurance Activities sector and Real Estate Activities sector) were more likely to report they had incorporated for protection through limited liability (53% compared to 36% all companies with at least one COM).

Compared to all companies with at least one COM, self-reported PSCs were more likely to have incorporated on recommendation from an accountant or agent (37% compared to 31%) and were more likely say they had been incorporated to pay less tax (27% compared to 20%).

Figure 3: Top 10 reasons why company was incorporated

Top 10 reasons why company was incorporated	Percentage of COMs who reported this reason
Protection through limited liability	36%
Giving the company a formal structure/give others confidence in the structure	36%
Recommended by accountant/agent	31%
To help business to grow	29%
Improved reputation/credibility	25%
Being able to meet the required criteria to be a supplier on certain contracts	21%
Tax and National Insurance savings (i.e. to pay less tax)	20%
Securing the company name/preventing others from using it	20%
To be able to issue shares	15%
To separate the company from other businesses	11%

Question (multiple responses allowed): For what reasons was the company incorporated? Base: all companies with at least one COM (n=855). N.B Only top 10 reasons included in the chart.

4. Company finances

This section summarises the finances of the companies with at least one COM, including turnover in the financial year 2022 to 2023 and profit levels. It details how many COMs retained earnings within the company in the financial year 2022 to 2023, how they retained these earnings, and why they did. Key findings included in this chapter are:

• the average (median) turnover of companies with a COM in the financial year 2022 to 2023 was between £250,000 to £500,000
• 68% of the companies that made a profit in the financial year 2022 to 2023 decided to retain at least some of their earnings in the company
• the most common way that the company retained earnings was by shareholders taking no (35%) or less (33%) dividends

4.1. Turnover and profit

Of those who declared turnover, the average (median) turnover of companies with at least one COM in the financial year 2022 to 2023 was between £250,000 to £500,000, though, as shown in Figure 4 below, companies had a wide range of turnover in the financial year 2022 to 2023. Twenty-five percent of companies with at least one COM had a turnover of between £1 million and less than £5 million, whilst another 25% had a turnover of £150,000 or less.

The vast majority (95%) of the company’s turnover came from normal day-to-day trading rather than investments in property or otherwise.

Figure 4: Company turnover in the financial year 2022 to 2023

Company turnover in the financial year 2022 to 2023	Percentage of COMs who reported this turnover
Less than £50,000	8%
£50,000 to less than £85,000	6%
£85,000 to less than £150,000	11%
£150,000 to less than £250,000	9%
£250,000 to less than £500,000	13%
£500,000 to less than £1 million	15%
£1 million to less than £5 million	25%
£5 million to less than £10 million	3%
£10 million to less than £50 million	2%
£50 million or more	0%
Don’t know	4%
Prefer not to say	3%

Question: What was the approximate UK turnover of your company in the 2022 to 2023 financial year?
Base: all companies with at least one COM (n=855)

Of companies that made profit, on average, companies with at least one COM made a profit of between £50,000 to £85,000 the financial year 2022 to 2023. Of companies that made a profit, one in three companies (32%) made a profit of less than £50,000, as shown in Figure 5 below. Thirteen percent of companies with at least one COM did not make a profit in the financial year 2022 to 2023 while 2% made a profit of £1 million or more.

Companies with zero employees were more likely to have not made a profit (32%) compared to the average for companies with at least one COM (13%), while medium sized companies were more likely to have made a profit of between £1 million to less than £5 million (24%) compared to the average (2%). The range of profit levels at self-reported PSCs was not significantly different from the range of profit levels at companies with at least one COM generally.

Figure 5: Profit levels in the financial year 2022 to 2023

Profit levels in the financial year 2022 to 2023	Percentage of COMs who reported this profit
We didn’t make a profit	13%
Less than £50,000	32%
£50,000 to less than £85,000	10%
£85,000 to less than £150,000	12%
£150,000 to less than £250,000	8%
£250,000 to less than £500,000	6%
£500,000 to less than £1 million	3%
£1 million to less than £5 million	2%
£5 million to less than £10 million	0%
£10 million to less than £50 million	0%
£50 million or more	0%
Don’t know	9%
Prefer not to say	4%

Question: And how much profit, if any, did your company make in the 2022 to 2023 financial year? Base: all companies with at least one COM (n=855)

4.2. Retaining profit

Amongst companies with at least one COM who made a profit in the financial year 2022 to 2023, around two in three (68%) decided to retain at least some of this profit in the company. Of these companies, 29% retained more than 90% of their profit within the company, whilst 32% retained between 1% to 50% of their profit.

Companies with at least one COM in the Professional, Scientific and Technical Activities sector were more likely to not retain profit in the company: 16% retained 0% of their profits in the financial year 2022 to 2023 compared to 9% of all companies with at least one COM.

Figure 6 shows that the most common ways companies with at least one COM retained profit was by shareholders taking no (35%) or less (33%) dividend income. Companies with COMs that received non-COM income were more likely to retain profit by shareholders not taking dividends (45% compared to 35% on average). One in four (26%) said they retained profit because they had made a bigger profit than expected.

Figure 6: If retained profit in company during the financial year 2022 to 2023, how?

If retained profit in company during the financial year 2022 to 2023, how?	Percentage of COMs who reported this approach
Shareholders did not take dividends	35%
Shareholders received a lower amount of dividends	33%
You increased your revenue	27%
You made a bigger profit than usual	26%
To keep cash in business	5%
To invest/reinvest into the business	2%
Other	6%
Don’t know	4%
Prefer not to say	1%

Question (multiple responses allowed): In what ways did your company choose to retain some of its profits in the 2022/2023 financial year? Base: all with a positive profit who retained some of it within the company (n=574)

Amongst companies with at least one COM who retained profits in the financial year 2022 to 2023, 46% did so for the financial security of the company, with the next most likely reasons being to build up reserves due to concern about future cashflow (36%) and to increase or maintain working capital (35%), as Figure 7 highlights.

Figure 7: Top 10 reasons for why earnings were retained in the company during the financial year 2022 to 2023

Top 10 reasons for why earnings were retained in the company during the financial year 2022 to 2023	Percentage of COMs who reported this reason
Financial security	46%
Build up reserves due to cash flow concerns	36%
Maintain or increase working capital	35%
Cover business cost	32%
Finance for future growth/expansion	25%
Finance for planned future investment	22%
Flexibility in how they are reinvested	12%
More tax efficient	11%
Company accountant/agent advice	11%
Build up reserves to sell company in future	9%

Question (multiple responses allowed): For what reasons did you choose to retain profits within the company? Only top 10 reasons chosen by respondents displayed on chart. Base: all with a positive profit who retained some of it within the company (n=574)

5. How COMs were remunerated, and why

This chapter covers the different ways that COMs were remunerated by their company, reasons for the remuneration approach, and whether COMs received any other forms of personal income. Key findings included in this chapter are:

• almost all COMs (90%) were remunerated in the financial year 2022 to 2023
• of COMs who were remunerated, salary was the most common remuneration form: 80% of COMs said they received a salary from the company
• 29% of COMs were also a COM at another company to the sampled one, where only half (51%) received income from that other company

5.1. How COMs were remunerated for their work in the company

Almost all COMs (90%) said they were remunerated by the company sampled in the financial year 2022 to 2023. Eight percent of COMs said they did not receive any remuneration, with a further 2% responding with either ‘Don’t know’ or ‘Prefer not to say’.

COMs from the following types of companies were more likely to say they were not remunerated in the financial year 2022 to 2023 than average (8%)

• companies with zero employees (42%)
• companies with a turnover of less than £50k (42%)

As shown in Figure 8 below, being paid with a salary was the most common form of remuneration among COMs with 8 in 10 (80%) saying they were paid by the company in this way. Dividends was next, with around two in three COMs (63%) remunerated in that way, followed by a long tail of other remuneration forms including payments into a company pension scheme (28%), health cover (14%) and company cars (13%). These remuneration types are independent of each other: COMs could be remunerated for their work in the company with one or a combination of these (for example, 80% of COMs who were remunerated with salary includes those who were received a salary only, and those who received a salary and other remuneration types).

Figure 8: Remuneration types for COMs in the financial year 2022 to 2023

Remuneration types for COMs in the financial year 2022 to 2023	Percentage of COMs who reported this remuneration type
Salary	80%
Dividends	63%
Company pension scheme	28%
Health cover	14%
Company cars	13%
Bonuses	7%
Benefits in Kind	5%
Company Loans	3%
Additional shares	1%
Something else	2%

Question (multiple responses allowed): Which of the following, if any, formed part of how you were remunerated at your company during the 2022 to 2023 financial year? Base: all COMs that have been at their company for at least 24 months (n=824)

The most common remuneration types were salary and dividends. In the financial year 2022 to 2023, 56% of COMs were paid in both salary and dividends, 24% were paid in salary but not dividends, while 7% were paid in dividends but not salary (COMs may have also received other remuneration types in addition to salary or dividends, such as a company car).

A small minority of COMs (4%) were neither paid in salary nor dividends while – as discussed above – 8% said they did not remunerate at all.

Some company types were more likely to be remunerating their COMs with some level of dividends. These were:

• small companies (with 10 to 49 employers) (71%)
• companies in the manufacturing sector (75%)
• companies with a turnover of £1 million to less than 10 million (76%)
• PSCs (72%)

The types of companies more likely to be remunerating their COMs with some level of salary are the same list as above (apart from PSCs who have a higher result than average but not significantly so). This indicates that COMs more likely to be remunerated with a salary are also more likely to be remunerated with in dividends too, as COMs tended to be remunerated with both.

5.2. Average COM income levels from the company

The average (median) amount of income received by COMs from their company in the financial year 2022 to 2023 was £31,420. Figure 9 below shows that almost half of COMs (45%) received an income of more than £12,570 and up to £50,270, while one in four (26%) received more than £50,270.

Figure 9: Personal gross income from the company in the financial year 2022 to 2023

Personal gross income from the company in the financial year 2022 to 2023	Percentage of COMs who reported this gross income amount
£0	3%
Up to £12,570	12%
Over £12,570 to £50,270	45%
Over £50,270 to £125,140	22%
Over £125,140 to £150,000	1%
Over £150,000 to £300,000	2%
More than £300,000	1%
Don’t know	5%
Prefer not to say	8%

Question: Approximately what was your personal gross income from this company in the 2022 to 2023 financial year? Base: All COMs that were remunerated in the financial year 2022 to 2023 (n=759)

Gross income from the company sampled also tended to increase with company size. Those more likely to have an income between £12,570 and £50,270 were COMs in companies with only one employee (60%), or in micro-sized companies (51% versus an average of 45%) whereas COMs in medium-sized companies were more likely to have a personal income of over £150,000 (16% versus an average of 4%). COMs in the Manufacturing sector were more likely to have a higher personal income than average (29% had an income of £50,270 to £125,140 vs an average of 22%).

5.3. Why the company chose that remuneration approach

The most common reason provided for choosing a particular remuneration approach for COMs was habit: 4 in 10 (40%) of COMs said their company remunerated in the way they did because they had ‘historically’ done so. The next most popular reasons were to maximise tax efficiency (32%), and because they were advised to by their accountant or agent (32%), as Figure 10 below shows.

Self-reported PSCs were more likely than average to say they were advised to remunerate COMs in a certain way by their accountant or agent (39% vs an average of 32%).

Figure 10: Company reasons for remunerating COMs in the way they did

Company reasons for remunerating COMs in the way they did	Percentage of COMs who reported this reason
Historic	40%
Maximise tax efficiency	32%
Advised by accountant or agent	32%
To provide a stable income	30%
Most convenient option	24%
To keep capital in the business	17%
For economic reasons	10%
Lack of profit	8%
Director’s retirement	5%
To attract the best talent	5%
As an incentive	6%
COVID-19	5%
Match competitor’s remuneration	4%
Provide a wage	2%
Other	7%

Question (multiple responses allowed): Why did the company choose to remunerate directors who are also shareholders in this way in the 2022 to 2023 financial year? Base: all companies that remunerated in FY 22/23 (n=724)

As shown in Figure 11, the following findings are based on the small minority (8%) of COMs who said their company did not remunerate COMs in the financial year 2022 to 2023. The reasons behind not remunerating COMs were often related to issues with company finances.

• 23% of those who did not remunerate said it was because they did not make sufficient profit
• 15% said it was because they did not make any profit
• 17% said it was to retain money within the business

Figure 11: Company reasons for not remunerating COMs if they did not

Company reasons for not remunerating COMs if they did not	Percentage of COMs who reported this reason
Did not make sufficient profit	23%
Retain money within business	17%
Did not make any profit	15%
Director-stakeholders have other income	15%
Not at a stage to offer additional benefits	6%
Director-stakeholders’ personal reasons	3%
Director-stakeholders’ loans were repaid	2%
Accountant or agent advice	1%

Question (multiple responses allowed): For what reasons did the directors who are also company shareholders not receive any remuneration in the 2022 to 2023 financial year? Base: all companies that didn’t remunerate in FY 22/23 (n=104)

5.4. Other COM income not from the sampled company

Approximately one in three COMs (29%) said they were also a COM at another company (in addition to the sampled one). Of those COMs that were a COM at another company, half (51%) said they received income from that company in the financial year 2022 to 2023. Over one in four COMs (27%) received dividends from another company where they were a COM, and a similar proportion received a salary from another company where they were COM (24%). Other remuneration types were less common.

One in three COMs (29%) said they received ‘non-COM’ income: that is, income outside of any companies where they were a COMs. Compared to COMs on average, COMs in the Financial, Insurance and Real Estate Activities sector (for the purposes of analysis, this subgroup combines responses from COMs in Financial and Insurance Activities sector and Real Estate Activities sector) were more likely than average to receive non-COM income (43%), as were COMs in companies with turnover of less than £50,000 (44%) and COMs at companies that were not self-reported PSCs (34%).

The most common form of non-COM income was rental income (received by 38% of COMs who received any non-COM income), followed by drawing from a pension scheme or state pension (17% and 23% respectively).

Figure 12: Non-COM income source if receiving this form of income

Non-COM income source if receiving this form of income	Percentage of COMs who reported this income source
Rental Income	38%
State Pension	23%
Drawing from Pension Scheme	17%
Interest	16%
Salary	13%
Dividend	8%
Partnership/Sole trade Income	8%
Capital Gains	5%
State benefits	5%
Income from a Trust	2%

Question (multiple responses allowed): In 2022 or 2023 did you receive income from any sources other than companies that you take a direct interest in? Base: those that did receive income for a source other than a company where they are a COM (n=245)

COMs who received non-COM income were more likely to have a relatively low income from the company sampled. COMs who received non-COM income were more likely to have an income of up to £12,570 (23%) than the average for companies with at least one COM (12%).

6. Future expectations of COMs

This chapter covers COMs future expectations for company turnover and plans for their company, the impact of COVID-19 on personal income, and whether planned tax increases influenced dividend payments.

Key findings included in this chapter are:

• 44% of COMs expected their company’s turnover to increase in the next 12 months
• almost half of COMs (45%) said that their personal income decreased during COVID-19, with a further 45% saying their income stayed at the same level
• 63% of COMs said they do not intend to change the way their company is being run in the next 5 years

6.1. Expectations for company turnover

As Figure 13 below shows, at the point of completing the survey, just under half of COMs (44%) expected their company’s turnover to increase in the next 12 months.

Compared to this, 13% of COMs expected turnover to decrease. However, there was a sizeable proportion of over a third (38%) who expected turnover to stay the same. These findings indicate that over half of COMs were expecting no to negative growth in the subsequent 12 months, although small companies (10-49 employees) were more likely to expect an increase in turnover (51% compared to the average 44%).

Figure 13: Expectations for company turnover in the next 12 months

Expectations for company turnover in the next 12 months	Increase	Remain about the same	Decrease	Expect to close or sell the business	Total
Percentage of COMs who reported this expectation for turnover	44%	38%	13%	2%	97%

Question (multiple responses allowed): To what extent, if at all, do you expect your company turnover to increase or decrease over the next 12 months? Please provide your best estimate. Base: all companies with at least one COM (n=855)

6.2. Impact of COVID-19 on personal income

Almost half of COMs (45%) said that their personal income decreased during the COVID-19 pandemic, whilst a further 45% said their income stayed at the same level. Less than 1 in 10 (7%) said their income had increased.

This highlights how consequential wider macroeconomic events can be for the personal income levels of COMs.

COMs significantly more likely to have said their income increased during COVID-19 than the average were COMs at:

• companies with only one COM (11%)
• companies in the manufacturing sector (13%)
• companies which were not family run (10%).

Family run companies were defined for the purpose of this research as companies that had more than one person, who were each other’s spouses, civil or other partners, children or parents, who were also both COMs at the company.

COMs significantly more likely to have said their income had stayed about the same during COVID-19 than the average were COMs at:

• companies with more than one COM (48%)
• companies which were family run (52%)

COMs significantly more likely to have said their income had decreased during COVID-19 than the average were:

• COMs at companies with a turnover of £50,000 to less than £250,000 (57%)
• COMs who received just COM income (48%)

6.3. Plans for the next five years

As Figure 14 below highlights, 6 in 10 COMs (63%) said they do not intend to change the way their company is being run in the next 5 years. However, one in six COMs (16%) said they intend to sell the company. COMs at medium sized companies were twice as likely to say they were planning to do so (31%) and those in the Manufacturing sector (22%) were also more likely to say they were intending to sell (compared to 16% on average).

Only 10% of COMs planned to pass the company on to another family member, with COMs at family run companies and companies in the Manufacturing sector more likely than average to be planning to (at 13% and 15% respectively).

Figure 14: COMs’ plans for the next 5 years

Plans for the next 5 years	Percentage of COMs who reported this plan
Sell the company	16%
Pass the company on to another family member	10%
Wind up or fully liquidate the company	8%
Buy or incorporate another company	6%
Change the legal status of the company	3%
Liquidate company assets to pay off debt	2%
Float the company on a publicly listed stock exchange	0%
None of the above	63%
Don’t know	5%

Question: Are there plans for your company to do any of the following over the next 5 years? Base: All companies with at least one COM (n=855)

6.4. Forestalling

As defined by the Office for Budget Responsibility, ‘forestalling’ occurs when firms or individuals bring forward or delay actions, following pre-announced tax changes, to avoid paying tax at a higher rate.

Only a small minority of COMs (6%) said they increased the size of dividend payments to COMs in the financial year 2021 to 2022 ahead of planned tax increases. This suggests that very few COMs proactively made changes to the way their company remunerated to preempt tax increases.

The following findings are based on the 6% of COMs who said they did increase dividend payments in the financial year 2021 to 2022 (unweighted base: 60). Due to the low base size, the following findings should be used for indicative purposes only.

• 56% said they did not increase dividend payments due to an expected tax increase in the next financial year
• 16% said an expected tax increase was the main reason for increasing dividend payments, whilst 22% said an expected tax increase was one of a few reasons for doing so

The 6% of COMs who said they had increased dividend payments were asked how they would recuperate lower company profits (unweighted base: 60). Due to the low base size, the following findings should be used for indicative purposes only.

• 43% of COMs said they would reduce outgoings or costs elsewhere
• 30% said they would take a lower income in financial year 2022 to 2023 only, while 23% said they would take a lower income over several years.
• 21% indicated that this forestalling would not lead to lower company profits and instead that the increase in dividends was possible because of higher profits in the financial year 2022 to 2023

7. Conclusion

The aim of this research was to identify the prevalence of companies with at least one COM in the UK and understand how COMs were remunerated for their work at these companies. COMs were widespread in UK companies.

• almost 9 in 10 (88%) of UK companies had at least one COM.
• a minority of COMs (36%) described their company as a Personal Service Company (PSC) based on a definition of a PSC provided in the survey.

The majority of companies with a COM retained at least some of their profits, typically for financial security.

• 68% of companies with at least one COM that made a profit in the financial year 2022 to 2023 retained at least some of their earnings in the company.
• the most common way companies retained earnings was by shareholders taking no dividend income (35%) or less dividend income (33%).
• almost half of companies (46%) that retained profits in the financial year 2022 to 2023 said they did so for the financial security of the company.

The majority of COMs (90%) were remunerated by the company in the financial year 2022 to 2023.

• the two most common forms of remuneration among COMs were through salary (80%) or dividends (63%), with over half of COMs (56%) paid in both salary and dividends.
• of the minority of companies (8%) that did not remunerate their COMs in the financial year 2022 to 2023, 23% said it was because they did not make sufficient profit.
• the median amount of income received by COMs from their company in the financial year 2022 to 2023 was £31,420. On average, COMs received £15,710 from their company in salary/bonuses and £12,568 from their company in dividends.

Some COMs also received income from sources other than the company sampled.

• of the 29% of COMs completing the survey who were also a COM at another company to the one sampled, only half of them (51%) received any remuneration from the other company.
• outside of COM related income, 29% of COMs received income unrelated to their work as a COM in any company, with rental income (38%) being the most common source. Most companies did not increase the size of dividend payments to COMs in the financial year 2021 to 2022 ahead of planned tax increases.
• only a small minority of COMs (6%) said their company had increased the size of dividend payments to COMs in the financial year 2021 to 2022 ahead of planned tax increases (referred to as ‘forestalling’).

8. Annex A: Statistical reliability

The final data from the survey is based on weighted samples, rather than the entire population of UK companies. The sample was originally stratified to enable reporting of smaller sizes and sectors, back to the originally drawn population profile (for example, HMRC Corporation Tax records). Percentage results are therefore subject to margins of error. These margins of error vary depending on the size of the sample and the percentage figure concerned.

The margins of error are calculated based on the effective sample size. This is the sample size that takes into account the survey weighting. In other words, it is the sample size that an equivalent survey with a simple random sample, that required no corrective weights, would have achieved.

For example, for a question where 50% of the UK companies with at least one COM sampled in the survey (with an effective sample size of 496) give a particular answer, 95 times out 100 this result would not vary more or less than 4.4 percentage points from the ‘true’ figure. The true figure is the figure that would have been obtained had the entire population of UK companies had responded to the survey. The margins of error that have been assumed to apply in this report are given in Table 3 below.

Please note this is the margin of error for total sample only, for subgroups the sample size will be smaller so the margin of error will be higher.

Table 1: Margins of error (in percentage points)

	Unweighted sample size	Effective sample size	Margin of error
UK companies with at least one COM	855	496	±4.4 percentage points

9. Annex B: Technical appendix

The following section provides technical details about recruitment for the survey, conducting the survey and the sample and weighting approach used.

9.1. Conducting the survey

The order of this research was conducted as follows:

• 10 cognitive interviews were conducted over Teams first, recruited from a random selection of 150 leads from the overall sample frame who received an advance letter early on in the project.
• Ipsos then undertook a comprehensive telephone pilot, releasing c15% of the overall sample (postopt out).
• Ipsos conducted main stage fieldwork from January – April 2024, which combined with the pilot stages produced 855 completed interviews.

9.2. Fieldwork:

Respondents could answer the survey by either a telephone interview or online. Interviews were mainly completed by telephone. While varying the data collection mode may impact how respondents answer, this questionnaire was largely focused on collecting factual data about retained income and remuneration approaches, rather than attitudinal data (which is more prone to mode effects). In addition, given the sensitivities around collecting financial data, providing an online survey gave the respondent an option that may feel more anonymous than an interviewer led telephone survey. This multimode approach therefore minimised the chance of missing or unreliable data, as well as improving the response rate. We, nonetheless, monitored for mode effects during fieldwork and did not observe any in the data.

Mode

Mode	Total	Percentage
Web/Online	149	17%
CATI	706	83%

To improve response rates for this research interviewers received a verbal and written briefing, calls were spread across the fieldwork period and there were at least weekly feedback calls between the Ipsos research and telephone teams discussing and combatting any recurring reasons for refusal. The sample was called at least 7 times over an extended period to maximise response rates and avoid potential complaints from respondents. The average length of interview was 21 minutes.

9.3. Cognitive interviews

Survey questions are designed to be standardised and understood and answered in a consistent manner to produce reliable and unbiased data for analysis. A survey pilot can tell us about overt problems with questions – for example questions which participants don’t answer or give ‘don’t know’ answers to, questions which participants asked to be repeated, or questions where their answers are inconsistent with responses to other questions. However, it doesn’t tell us about whether participants:

• understand the terms used in the question or the question as a whole
• can accurately recall the information needed to answer the question,
• make appropriate judgements about which information to include in their answer,
• can fit the answer they want to give into the answer categories or format provided, or
• can navigate a self-completion questionnaire.

Cognitive interviews allowed us to explore these issues so that the final survey questions were understood as the researchers intended and produced data which can be compared between key groups of interest and over time.

During the cognitive interviews, the survey questions were delivered in a mode and setting as close to the main survey as possible – a process termed as ‘mode mimicking’. For example, Three main techniques were then used to explore the question and answer process:

• observation – looking for hesitation, confusion, requests for clarification
• think aloud – the participant is asked to verbalise the thought processes they go through when answering the questions
• probing – the interviewer asks scripted or spontaneous probes to explore specific issues such as how participants understand a particular word or phrase, what time frame they are thinking about when recalling information, whether there are any missing answer options

9.4. Mailout

Addresses were identified from UK company data comprising all actively trading UK companies. We cleaned these addresses by running them through the Postal Address File to maximise the telephone matching rate.

One COM was chosen to be interviewed per company. In companies with more than one COM we identified all eligible COMs and selected one at random.

The advanced letter sent out by Ipsos outlined the purpose of the research and reassurances around confidentiality, as well as an option to opt out of the research, if respondents did not want to be contacted about the survey.

9.5. Sample and weighting information

In the mainstage fieldwork, a total of 974 directors completed the screening questions. In total 855 interviews were achieved with respondents across the United Kingdom who were both a director and a shareholder of their company.

9.5.1. Sample building approach

Firstly, directors were identified through the companies’ house database. One director was chosen to be interviewed per company. In companies with more than one director we identified all eligible directors and selected one at random. . Telephone number matching was then conducted on the records of Directors. A subsample of these were sent letters. All those that did not opt out were either called by Ipsos’ telephone team or completed the survey online.

9.5.2. Sample post pilot improvement process

The pilot identified two main concerns: a high proportion of unusable phone numbers and a larger than expected number of leads belonging to accountants/ agents. This prompted the following two actions. HMRC conducted further sample enrichment to improve address details for the full sample and passed these details back to Ipsos for further telephone matching. Ipsos revisited the initial telephone matching process to assess the quality of the matched leads.

The improved sample from HMRC was enriched by Ipsos’ approved supplier based on CRN information: any leads with a new phone number had that updated for the next stage; any leads with a new address were sent an opt out letter. Our supplier also identified agent/accountant leads, but given that the primary match criteria was CRN, this process flagged contact names with an accountant role within the business and are therefore likely to be legitimate leads, even if they are not our target respondent.

The second action (reviewing the initial matching process) revealed that while a good proportion of leads were matched on CRN, a sizeable proportion of the initial sample supplied by HMRC could only be matched on address and postcode, generating a lower quality phone number.

This process enabled us to significantly improve the sample quality and achieved the desired response rate.

9.5.3. Stratification

The sample was stratified by size and sector to ensure that the invited sample was balanced on key firmographic metrics. The sampling approach means the achieved sample is balanced and that there is no need to apply heavy weights in the data processing stage.

9.5.4. Weighting

To ensure the survey results are as representative of the population of companies in the United Kingdom as possible, results were weighted on company size and sector.

Size

Number of employees	Achieved	Weighted
Zero employees	62	70
One employee	83	111
2-9 (micro)	340	389
10-49 (small)	249	272
50-249 (medium)	107	12
250+ (large)	9	-

Sector

Sector	Achieved	Weighted
Primary and utilities	85	25
Manufacturing	133	33
Construction	96	140
Wholesale, retail, transport and hospitality	172	165
Information and communications	21	50
Financial / insurance activities and real estate	58	33
Professional, scientific and technical activities	125	116
Administrative and support service activities	39	74
Education or health	24	99
Arts, leisure or other services	96	115

10. Annex C: Questionnaire

Questions in this questionnaire are indicated by a unique name or ‘code’, such as ‘Q_NAME’. These codes are used throughout the questionnaire to denote questions which should only be asked to certain respondents, based on their responses to previous questions.

Screener

Q_NAME. ASK ALL: These first few questions ask about your company.

We have [COMPANY_FROM_SAMPLE] as the name of your company. Is that correct?

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. Yes
2. No, but it is almost correct (For example, there is a spelling mistake, you have a slightly different trading name, etc.). WRITE IN AND CONTINUE. REPLACE COMPANY_FROM_SAMPLE WITH COMPANY
3. No, it is incorrect THANK AND CLOSE

MESSAGE TO USE IF THANK AND CLOSE: Thank you, that is all the questions we had for you today.

Q_NAME_INFO. ASK ALL:

READ OUT Please think about [COMPANY] when answering the questions in this survey.

Only companies that are subject to Corporation Tax have been included in this research. If you are part of a partnership or LLP made up of corporate bodies, please respond to the questions in this survey in relation to the company.

Q_DIRECTORS2. ASK ALL:

How many Directors did [COMPANY] have during the 2022 to 2023 financial year, including yourself if you are a Director?

ADD IF NECESSARY/INFO BUTTON FOR WEB: When referring to Directors, we mean those who are formally registered as being a company Director with Companies House and are legally responsible for running the company. Every UK company is legally required to have at least 1 registered Director.

WRITE IN RANGE 1–100 (SOFT CHECK IF >8)

-98. DO NOT READ OUT: Don’t know [THANK AND CLOSE]

Q_COMS. ASK ALL:

(IF Q_DIRECTORS2 >1) And how many of those [Q_DIRECTORS] Directors are were also shareholders in the 2022 to 2023 financial year? (IF Q_DIRECTORS2 = 1) And was this Director also a shareholder in the 2022 to 2023 financial year?

ADD IF NECESSARY/INFO BUTTON FOR WEB: By this, we mean how many of the company Directors also own or part owned the voting shares in the company? Voting shares are sometimes referred to as ordinary shares. Please include yourself if you are a Director

WRITE IN RANGE 0-VALUE AT Q_DIRECTORS2. IF 0 THANK AND CLOSE

-98. DO NOT READ OUT: Don’t know [THANK AND CLOSE]

CATI ONLY: PARTICIPANT Please can I check if you are both a Director and a Shareholder at [COMPANY]?

IF YES: CONTINUE TO Q_COMPANY_INFO. IF NO: PROCEED WITH INFORMATION SCREENS BELOW.

INFO:

IF Q_COMS = 1 For this survey, we need to talk to the Director who is also a shareholder. Thank you for your assistance with this survey so far, but please could you transfer me to the Director who is also a shareholder within the business?

IF Q_COMS > 1 For this survey, we need to talk to one of the Directors that is also a shareholder. Please could you transfer me to one of these individuals within your business?

IF UNABLE TO TRANSFER, CONFIRM THEIR NAME AND CONTACT NUMBER, AND SET APPOINTMENT FOR A CALL BACK IF REFUSE TO TRANSFER AND RESPONDENT IS NOT A COM, THANK AND CLOSE IF CALL IS TRANSFERRED, RETURN TO INTRO TO OBTAIN INFORMED CONSENT, BEFORE REROUTING TO PARTICIPANT.

NOTE TO SCRIPTING: Please can we make a note of the following call outcomes:

1. Got through to the named participant in the sample and they are a Director-Shareholder
2. Got through to the named participant in the sample, they are not a Director-Shareholder but transferred the call or made an appointment with a Director-Shareholder
3. Got through to the named participant in the sample but they refused to pass on the call.
4. Got through to someone other than the named participant, and they are a Director-Shareholder
5. Got through to someone other than the named participant in the sample, they are not a Director-Shareholder but transferred the call or made an appointment with a Director-Shareholder
6. Got through to someone other than the named participant in the sample but they refused to pass on the call.
7. Other (SPECIFY)
   
   

Q_COMPANY_INFO. ASK ALL:

READ OUT: Throughout this survey, we will refer to [COMPANY] as ‘your company’.

Q_DURATION. ASK ALL:

For how long have you been both a Director and a shareholder at your company?

SINGLE CODE. READ OUT.

IF WEB: Please select one answer

1. Less than 24 months
2. 24 months or longer
   
   

Q_STATUS. ASK ALL:

What is the current status of your company? Are you…?

SINGLE CODE. READ OUT

IF WEB: Please select one answer

1. Currently trading
2. Temporarily closed or paused operations or trade
3. Currently trading but intending to close or pause trade in the foreseeable future
4. Permanently closed [THANK AND CLOSE]
   
   

Q_MOTIVE. ASK IF Q_STATUS = 2 or 3:

Q_STATUS = 2: For what reasons have you temporarily closed or paused operations or trade? Q_STATUS = 3: For what reasons are you intending to close or pause trade in the foreseeable future?

MULTICODE CODES 1-5. PROMPT TO CODE. RANDOMISE CODES 1-4.

IF WEB: Please select all that apply

1. Restructuring the business
2. Planning to sell or wind up the company
3. The business is in financial difficulty
4. Conducting maintenance, installing new equipment or similar
5. Other [SPECIFY]

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say 

Company Ownership

READ OUT: These next questions ask about how your company is structured. As a reminder, we will refer to [COMPANY] as ‘your company’ in this survey.

Q_SHAREHOLDERNUM. ASK ALL:

How many shareholders does your company currently have, including yourself?

ADD IF NECESSARY/INFO BUTTON FOR WEB: By this we mean how many individuals own or part own the voting shares in the company? Voting shares are sometimes referred to as ordinary shares

WRITE IN RANGE 0–99999 (HARD CHECK IF LOWER THAN Q_COMS)

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_SHAREHOLDERBAND. ASK IF Q_SHAREHOLDERNUM = -98 OR -99:

Are there…?

SINGLE CODE. READ OUT 1-7

HARD CHECK IF LOWER THAN Q_COMS

IF WEB: Please select one answer

1. 1
2. 2 to 4
3. 5 to 10
4. 11 to 20
5. 21 to 30
6. 31 to 50
7. More than 50

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_EMPLOYNUM. ASK ALL:

How many employees, including yourself, does your company have in the UK? By this we mean people on your payroll paid through PAYE.

ADD IF NECESSARY/INFO BUTTON FOR WEB: Please include yourself and any other company directors if any of you are on the company payroll, even if this is only part of your remuneration.

ADD IF NECESSARY/INFO BUTTON FOR WEB: Full-time and part-time staff and directors should be included if on the payroll. Please include agency staff if you are a recruitment agency and pay them through your payroll. Please exclude volunteers and anyone else not on the payroll.

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. 0
2. 1
3. 2 to 4
4. 5 to 9
5. 10 to 49
6. 50 to 249
7. 250 to 500
8. More than 500

-98.DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMNUM. ASK ALL WHO HAVE AT LEAST ONE EMPLOYEE (≥1 EMPLOYEE AT Q_EMPLOYNUM):

IF Q_COMS>1: It was mentioned earlier in the survey that your company has [Q_COMS] Directors who are also shareholders. How many of these individuals are also employees in the UK? By this we mean people on your payroll paid through PAYE

IF Q_COMS=1: It was mentioned earlier in the survey that your company has 1 Director who is also a shareholder. Is this individual also an employee in the UK? By this we mean people on your payroll paid through PAYE

Please include yourself in your answer, if applicable.

ADD IF NECESSARY/INFO BUTTON FOR WEB: Full-time and part-time staff and working directors should be included if on the payroll. Please include agency staff if you are a recruitment agency and pay them through your payroll. Please exclude volunteers and anyone else not on the payroll

WRITE IN RANGE 0–VALUE AT Q_COMS (HARD CHECK IF >VALUE AT Q_COMS)

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMBAND. ASK IF Q_COMNUM = -98 OR -99 AND Q_COMS>1:

Are there approximately…?

SINGLE CODE. READ OUT

IF WEB: Please select one answer

1. 0
2. 1
3. 2 to 4
4. 5 to 9
5. 10 to 49
6. 50 to 249
7. 250 to 500
8. More than 500

-98.DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

DO NOT DISPLAY CODES WHERE MAX OF BANDS IS LARGER THAN Q_COMS ON SCREEN ABOVE

Q_FAM_COMS. ASK ALL EXCEPT Q_COMS = 1:

And thinking only about the [VALUE AT Q_COMS] company Directors who are also shareholders, how many families, if any, are there?

ADD IF NECESSARY/INFO BUTTON FOR WEB: By families, we mean more than one person who are each other’s spouses, civil or other partners, children or parents. For example, a married couple, or a father and daughter would count as 1 family. A married couple and their daughter would also count as 1 family. To clarify, we are looking to understand the number of families, rather than the number of people belonging to each family group.

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer.

1. Zero
2. One
3. More than one [DO NOT SHOW FOR THOSE WHERE Q_COMS = 2]

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_INCORPREASON. ASK ALL:

For what reasons was the company incorporated?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Incorporation means it is registered as a legally recognised business with Companies House. To be incorporated means your company is its own legal entity and is owned by its shareholders.

MULTICODE OK EXPECT DK AND REF. PROBE FULLY AND SELECT ALL THAT APPLY

IF WEB: RANDOMISE LIST 1-12 IF WEB: Please select all that apply

1. Protection through limited liability
2. Tax and National Insurance savings (for example, to pay less tax)
3. Improved reputation/credibility
4. Being able to meet the required criteria to be a supplier on certain contracts
5. Easier access to finance
6. Making it easier to transfer or sell business ownership
7. Securing the company name / preventing others from using it
8. To be able to issue shares
9. Giving the company a formal structure / give others confidence in the structure
10. To help business to grow
11. To access a cheaper business bank account
12. Recommended by accountant / agent
13. Stipulation for joining a franchise
14. To separate the company from other businesses
15. Other [SPECIFY]
16. SINGLE CODE: The company is not incorporated

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Company Income

READ OUT: These next questions ask about your business’ performance and investments. Your data will be combined with other businesses and all information will be reported anonymously.

Most of the questions will be about the 2022 to 2023 financial year – this is not the current financial year, but the financial year that ended in April last year.

This study is being carried out independently of HMRC’s tax databases and won’t be matched back to them, meaning we may need to collect certain financial information that you may have already submitted to HMRC.

In this section, we will continue to refer to [COMPANY] as ‘your company’.

ADD IF NECESSARY/INFO BUTTON FOR WEB: We are aware that not all businesses will account in an April-April financial year. If this is the case, please give answers for the April-April period we are asking about as best as you can.

Q_TURNOVERBAND. ASK ALL:

What was the approximate UK turnover of your company in the 2022 to 2023 financial year?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Turnover is the total amount of money generated in the organisation from all sales of goods and services before any deductions.

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. Less than £50,000
2. £50,000 to less than £85,000
3. £85,000 to less than £150,000
4. £150,000 to less than £250,000
5. £250,000 to less than £500,000
6. £500,000 to less than £1 million
7. £1 million to less than £5 million
8. £5 million to less than £10 million
9. £10 million to less than £50 million
10. £50 million or more

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_TURNOVERSOURCE_MAIN. ASK ALL:

Approximately what proportion of your turnover in the 2022 to 2023 financial year came from your normal day-to-day trade, as opposed to property investments, or other types of investments outside your regular trade?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Investments could include property rental, property income, share dealing or other investments outside your regular trade

INTERVIEWER: PLEASE ENTER AS A PERCENTAGE. ROUGH ESTIMATES ARE ACCEPTABLE.

1. Normal day-to-day trade (including investments if this is a core part of your business) WRITE IN RANGE 0-100%DISPLAY % NEXT TO BOX
2. Investments outside of normal day-to-day trade WRITE IN RANGE 0-100%DISPLAY % NEXT TO BOX
3. Property investments outside of normal day-to-day trade WRITE IN RANGE 0-100%DISPLAY % NEXT TO BOX

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

HARD CHECK IF ANSWERS FOR CODES 1 to 3 EXCEED 100% IN TOTAL. IF ANSWERED 100% AT STATEMENT 1 DO NOT ASK STATEMENTS 2 AND 3. IF ANSWERED 100% AT STATEMENT 2 DO NOT ASK STATEMENT 3.

Q_PROFIT. ASK ALL:

And how much profit, if any, did your company make in the 2022 to 2023 financial year?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Profit is a company’s total revenue minus explicit costs. It can be found in the company accounts.

SINGLE CODE. PROMPT TO CODE IF WEB: Please select one answer

1. £0
2. Less than £50,000
3. £50,000 to less than £85,000
4. £85,000 to less than £150,000
5. £150,000 to less than £250,000
6. £250,000 to less than £500,000
7. £500,000 to less than £1 million
8. £1 million to less than £5 million
9. £5 million to less than £10 million
10. £10 million to less than £50 million
11. £50 million or more

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_REMUN_OWN. ASK ALL EXCEPT Q_DURATION = 1:

Which of the following, if any, formed part of how you were remunerated at your company during the 2022 to 2023 financial year?

MULTICODE OK EXCEPT DK AND REF OR CODE 12 PROBE FULLY AND SELECT ALL THAT APPLY

IF WEB: Please select all that apply

1. Salary
2. Dividends
3. Bonuses
4. Earning/receiving additional shares
5. Payments into the company pension scheme
6. Payouts from the company pension scheme
7. Company cars
8. Health cover
9. Company Loans
10. Benefits in Kind
11. Something else [SPECIFY]
12. I did not receive any remuneration in the 2022 to 2023 financial year

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_REMUN. ASK IF Q_COMS>1:

[IF QCOMS=2] This question is about the other Director who is also a shareholder. [IF CATI= I will read out some different types of remuneration. IF WEB = Below are some different types of remuneration.] In the 2022 to 2023 financial year, did they receive each type of remuneration from your company?

[IF QCOMS>2] This question is about the [Q_COMS-1] other Directors who are also shareholders. [IF CATI= I will read out some different types of remuneration. IF WEB = Below are some different types of remuneration.] In the 2022 to 2023 financial year, did all, some or none of your Director-shareholders receive each type of remuneration from your company?

SINGLE CODE. READ OUT ROWS AND PROMPT TO COLUMNS

DISPLAY AS A GRID

COLUMNS IF QCOMS=2

1. Yes
2. No

-98 DO NOT READ OUT: Don’t know

-99 DO NOT READ OUT: Prefer not to say

COLUMNS IF QCOMS>2

1. All Directors who are also shareholders
2. Some Directors who are also shareholders
3. None of the Directors who are also shareholders

-98 DO NOT READ OUT: Don’t know

-99 DO NOT READ OUT: Prefer not to say

IF WEB: Please select one answer per type of remuneration

1. Salary
2. Dividends
3. Bonuses
4. Earning/receiving additional shares
5. Payments into the company pension scheme
6. Payouts from the company pension scheme
7. Company cars
8. Health cover
9. Company Loans
10. Benefits in Kind
11. Something else

SCRIPTER: CREATE DUMMY VARIABLE FOR ALL THOSE WHO HAVE COMS THAT DON’T RECEIVE REMUNERATION CALLED ‘NO_REMUN’ NO_REMUN = 1 IF:

• Q_REMUN = NO OR None of the Directors AT ALL STATEMENTS
• OR Q_REMUN_OWN -98 OR -99 OR CODE 12
  
  

Q_REMUNREASON. ASK ALL EXCEPT NO_REMUN =1 OR Q_DURATION = 1:

Why did the company choose to remunerate Directors who are also shareholders in this way in the 2022 to 2023 financial year?

MULTICODE. PROBE FULLY AND SELECT ALL THAT APPLY

IF WEB: RANDOMISE LIST 1-13

IF WEB: Please select all that apply

1. To maximise tax efficiency
2. As an incentive (for example, shares will generate dividends)
3. To keep capital in the business
4. To match competitors’ remuneration structures
5. To attract the best talent
6. For economic reasons (for example, struggling in a recession)
7. Lack of profit
8. To provide a stable income
9. Advised to do so by accountant or agent
10. Most convenient option
11. Historic / have always done it this way
12. Directors are retired / approaching retirement
13. Due to changes to the business as a result of the COVID-19 pandemic
14. Other [SPECIFY]

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_NOREMUN. ASK IF NO_REMUN = 1:

For what reasons did the Directors who are also company shareholders not receive any remuneration in the 2022 to 2023 financial year?

MULTICODE. PROBE FULLY AND SELECT ALL THAT APPLY

IF WEB: RANDOMISE LIST 1-10

IF WEB: Please select all that apply

1. Company did not make any profit
2. Company did not make sufficient profit
3. Wanted to retain money within the business
4. Director-stakeholder(s) waived their remuneration for personal reasons
5. Director-stakeholder(s) loans to the company were repaid, instead of company income
6. Business was not at a stage to offer additional benefits
7. Could already claim benefits / expenses on the business
8. Accountant or agent advised against it
9. Director-stakeholder(s) have an alternative source of income
10. Directors are retired / approaching retirement
11. Other [SPECIFY]

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_REMUN_OTHER. ASK IF Q_COMS>1:

[IF QCOMS=2] This question is about the other Director who is also a shareholder. In the 2022 to 2023 financial year, did they receive income from any other sources, such as from another company that they own? Please do not include income they received from [COMPANY] in your answer.

1. Yes
2. No

-98 DO NOT READ OUT: Don’t know

-99 DO NOT READ OUT: Prefer not to say

[IF QCOMS>2] This question is about the [Q_COMS-1] other Directors who are also shareholders. In the 2022 to 2023 financial year, did all, some or none of your Director-shareholders receive income from any other sources, such as from another company that they own? Please do not include income their received from [COMPANY] in your answer.

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. All Directors who are also shareholders
2. Some Directors who are also shareholders
3. None of the Directors who are also shareholders

-98 DO NOT READ OUT: Don’t know

-99 DO NOT READ OUT: Prefer not to say

Q_COMINCOME22. ASK ALL EXCEPT Q_REMUN_OWN = 12 OR Q_DURATION = 1:

Approximately what was your personal gross income from this company in the 2022 to 2023 financial year?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Gross income is your income before paying any tax or deductions. This would include any salary, dividends and any payment of new shares during the year.

Collecting this information is important as this study is conducted independently of HMRC without reference to their existing data. No individual responses will be identified in any report of the findings.

INTERVIEWER: PLEASE ENTER THE CORRECT NUMBER OF DIGITS. DO NOT USE SHORTHAND

WRITE IN MINIMUM £0. DISPLAY £ NEXT TO BOX

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMINCOME22BAND. ASK IF Q_COMINCOME22 = -98 OR -99:

Was it approximately…?

SINGLE CODE. READ OUT 1-7

IF WEB: Please select one answer

1. £0
2. Up to £12,570
3. More than £12,570 up to £50,270
4. More than £50,270 up to £125,140
5. More than £125,140 up to £150,000
6. More than £150,000 up to £300,000
7. More than £300,000

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMSAL22. ASK ALL WHO RECEIVED INCOME IN 2022 to 2023 (ALL EXCEPT Q_COMINCOME22=0 OR Q_COMINCOME22BAND = 1, -98 OR -99 OR Q_DURATION = 1 OR EXCEPT Q_REMUN_OWN = 12):

Approximately what amount of your personal income of [VALUE AT Q_COMINCOME22 OR Q_COMINCOME22BAND] from this company in the 2022 to 2023 financial year was in the form of salary or bonuses?

Would you prefer to answer with a figure or a percentage? WRITE IN, MINIMUM £0. MAXIMUM VALUE IS VALUE AT Q_COMINCOME22 OR QCOMINCOME22BAND. DISPLAY £ NEXT TO BOX.

OFFER SEPARATE PERCENTAGE ENTRY BOX. WRITE IN RANGE 0%-100%. DISPLAY % NEXT TO BOX.

INTERVIEWER: PLEASE ENTER THE CORRECT NUMBER OF DIGITS. DO NOT USE SHORTHAND

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMSAL22BAND. ASK IF Q_COMSAL22 = -98 or -99:

Was it approximately…?

SINGLE CODE. READ OUT 1-7

IF WEB: Please select one answer

IF ANSWERED IN NUMERIC TERMS AT Q_COMSAL22, DISPLAY NUMERIC SCALE, IF SELECTED IN PERCENTAGE TERMS, DISPLAY PERCENTAGE SCALE.

1. £0
2. Up to £12,570
3. More than £12,570 up to £50,270
4. More than £50,270 up to £125,140
5. More than £125,140 up to £150,000
6. More than £150,000 up to £300,000
7. More than £300,000

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

HARD CHECK IF MAX BAND IS HIGHER THAN Q_COMINCOME22 OR QCOMINCOME22BAND

1. 0%
2. Between 1% and 10%
3. Between 11% and 20%
4. Between 21% and 30%
5. Between 31% and 40%
6. Between 41% and 50%
7. Between 51% and 60%
8. Between 61% and 70%
9. Between 71% and 80%
10. Between 81% and 90%
11. Between 91% and 100%

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMDIV22. ASK ALL WHO RECEIVED INCOME IN 2022 to 2023 (ALL EXCEPT Q_COMINCOME22=0 OR Q_COMINCOME22BAND = 1, -98 OR -99 OR Q_DURATION = 1 OR EXCEPT Q_REMUN_OWN = 12):

Approximately what amount of your personal gross income from this company in the 2022 to 2023 financial year was in the form of dividends?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Gross income is your income before paying any tax or deductions.

IF ANSWERED IN NUMERIC TERMS AT Q_COMSAL22, DISPLAY NUMERIC ENTRY BOX, IF SELECTED IN PERCENTAGE TERMS, DISPLAY PERCENTAGE ENTRY BOX.

IF OFFER SEPARATE PERCENTAGE ENTRY BOX. WRITE IN RANGE 0%-100%. DISPLAY % NEXT TO BOX.

WRITE IN, MINIMUM £0. MAXIMUM VALUE IS VALUE AT Q_COMINCOME22 OR QCOMINCOME22BAND. DISPLAY £ NEXT TO BOX

HARD CHECK IF Q_COMDIV22 + Q_COMSAL22 (OR LOWEST VALUE IN BAND IF ANSWERED Q_COMSAL22BAND) = > Q_COMINCOME22 (OR HIGHEST VALUE IN BAND IF ANSWERED Q_COMINCOME22BAND) OR > 100%

IF CATI HARD CHECK TEXT SHOULD READ: Dividend and salary responses cannot total more than the total income response. Please check responses. IF WEB HARD CHECK TEXT SHOULD READ: Your dividend and salary responses cannot total more than your total income response. Please check your previous responses at these questions.

INTERVIEWER: PLEASE ENTER THE CORRECT NUMBER OF DIGITS. DO NOT USE SHORTHAND

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMDIV22BAND: ASK IF Q_COMDIV22 = -98 OR -99

Was it approximately…?

SINGLE CODE. READ OUT 1-7

IF WEB: Please select one answer

IF ANSWERED IN NUMERIC TERMS AT Q_COMSAL22, DISPLAY NUMERIC SCALE, IF SELECTED IN PERCENTAGE TERMS, DISPLAY PERCENTAGE SCALE.

HARD CHECK IF LOWEST VALUE WITHIN BAND AT Q_COMDIV22BAND + Q_COMSAL22 (OR LOWEST VALUE IN BAND IF ANSWERED Q_COMSAL22BAND) = > Q_COMINCOME22 (OR HIGHEST VALUE IN BAND IF ANSWERED Q_COMINCOME22BAND) OR > 100%

IF CATI HARD CHECK TEXT SHOULD READ: Dividend and salary responses cannot total more than the total income response. Please check responses. IF WEB HARD CHECK TEXT SHOULD READ: Your dividend and salary responses cannot total more than your total income response. Please check your previous responses at these questions.

1. £0
2. Up to £12,570
3. More than £12,570 up to £50,270
4. More than £50,270 up to £125,140
5. More than £125,140 up to £150,000
6. More than £150,000 up to £300,000
7. More than £300,000

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

1. 0%
2. Between 1% and 10%
3. Between 11% and 20%
4. Between 21% and 30%
5. Between 31% and 40%
6. Between 41% and 50%
7. Between 51% and 60%
8. Between 61% and 70%
9. Between 71% and 80%
10. Between 81% and 90%
11. Between 91% and 100%

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

READ OUT IF CATI/ SCREEN IF WEB EXCEPT IF Q_DURATION=1: We would now like you to think about the financial year two years ago the 2021/2022 financial year. This is the financial year that ended in April 2022.

Collecting this information is important as this study is conducted independently of HMRC without reference to their existing data. No individual responses will be identified in any report of the findings.

Q_COMINCOME21 DELETED POST PILOT

Q_COMINCOME21BAND. ASK ALL EXCEPT Q_DURATION = 1:

What was your personal gross income from this company in the 2021/22 financial year? Was it approximately…?

ADD IF NECESSARY/INFO BUTTON FOR WEB: Gross income is your income before paying any tax or deductions.

This would include any salary, dividends and any payment of new shares during the year.

SINGLE CODE. READ OUT 1-7

IF WEB: Please select one answer

1. £0
2. Up to £12,500
3. More than £12,500 up to £50,270
4. More than £50,270 up to £125,140
5. More than £125,140 up to £150,000
6. More than £150,000 up to £300,000
7. More than £300,000

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMSAL21. ASK ALL WHO RECEIVED AN INCOME FROM THEIR COMPANY IN 2021/2022 (ALL EXCLUDING CODES 1, -98 OR -99 AT Q_COMINCOMEBAND21 OR Q_DURATION = 1):

Approximately what amount of your personal income from this company in the 2021/22 financial year was in the form of salary? Please include any bonuses you received as part of your salary.

Would prefer to answer with a figure or a percentage? WRITE IN, MINIMUM £0. MAXIMUM VALUE IS VALUE AT QCOMINCOME21BAND. DISPLAY £ NEXT TO BOX

OFFER SEPARATE PERCENTAGE ENTRY BOX. WRITE IN RANGE 0%-100%. DISPLAY % NEXT TO BOX.

INTERVIEWER: PLEASE ENTER THE CORRECT NUMBER OF DIGITS. DO NOT USE SHORTHAND

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMSAL21BAND. ASK IF Q_COMSAL21 = -98 OR -99:

Was it approximately…?

SINGLE CODE. READ OUT 1-7

IF WEB: Please select one answer

IF ANSWERED IN NUMERIC TERMS AT Q_COMSAL21, DISPLAY NUMERIC SCALE, IF SELECTED IN PERCENTAGE TERMS, DISPLAY PERCENTAGE SCALE.

1. £0
2. Up to £12,500
3. More than £12,500 up to £50,270
4. More than £50,270 up to £125,140
5. More than £125,140 up to £150,000
6. More than £150,000 up to £300,000
7. More than £300,000

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

1. 0%
2. Between 1% and 10%
3. Between 11% and 20%
4. Between 21% and 30%
5. Between 31% and 40%
6. Between 41% and 50%
7. Between 51% and 60%
8. Between 61% and 70%
9. Between 71% and 80%
10. Between 81% and 90%
11. Between 91% and 100%

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMDIV21. ASK ALL WHO RECEIVED AN INCOME FROM THEIR COMPANY IN 2021/2022 (ALL EXCLUDING CODES 1, -98 OR -99 AT Q_COMINCOMEBAND21 OR Q_DURATION = 1):

Approximately what amount of your personal gross income from this company in the 2021/22 financial year was in the form of dividends?

Would prefer to answer with a figure or a percentage? ADD IF NECESSARY/INFO BUTTON FOR WEB: Gross income is your income before paying any tax or deductions.

IF ANSWERED IN NUMERIC TERMS AT Q_COMSAL21, DISPLAY NUMERIC ENTRY BOX, IF SELECTED IN PERCENTAGE TERMS, DISPLAY PERCENTAGE ENTRY BOX.

WRITE IN, MINIMUM £0. MAXIMUM VALUE IS VALUE AT QCOMINCOME21BAND. DISPLAY £ NEXT TO BOX

OFFER SEPARATE PERCENTAGE ENTRY BOX. WRITE IN RANGE 0%-100%. DISPLAY % NEXT TO BOX.

HARD CHECK IF Q_COMDIV21 + Q_COMSAL21 (OR LOWEST VALUE IN BAND IF ANSWERED Q_COMSAL21BAND) = > HIGHEST VALUE IN BAND AT Q_COMINCOME21BAND OR > 100%

IF CATI HARD CHECK TEXT SHOULD READ: Dividend and salary responses cannot total more than the total income response. Please check responses. IF WEB HARD CHECK TEXT SHOULD READ: Your dividend and salary responses cannot total more than your total income response. Please check your previous responses at these questions. INTERVIEWER: PLEASE ENTER THE CORRECT NUMBER OF DIGITS. DO NOT USE SHORTHAND

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COMDIV21BAND. ASK IF Q_COMDIV21 = -98 OR -99:

Was it approximately…?

SINGLE CODE. READ OUT 1-7

IF WEB: Please select one answer

IF ANSWERED IN NUMERIC TERMS AT Q_COMSAL21, DISPLAY NUMERIC SCALE, IF SELECTED IN PERCENTAGE TERMS, DISPLAY PERCENTAGE SCALE.

HARD CHECK IF LOWEST VALUE WITHIN BAND AT Q_COMDIV21BAND + Q_COMSAL21 (OR LOWEST VALUE IN BAND IF ANSWERED Q_COMSAL21BAND) = > Q_COMINCOME21 (OR HIGHEST VALUE IN BAND IF ANSWERED Q_COMINCOME21BAND) OR > 100%

IF CATI HARD CHECK TEXT SHOULD READ: Dividend and salary responses cannot total more than the total income response. Please check responses. IF WEB HARD CHECK TEXT SHOULD READ: Your dividend and salary responses cannot total more than your total income response. Please check your previous responses at these questions.

1. £0
2. Up to £12,500
3. More than £12,500 up to £50,270
4. More than £50,270 up to £125,140
5. More than £125,140 up to £150,000
6. More than £150,000 up to £300,000
7. More than £300,000

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

1. 0%
2. Between 1% and 10%
3. Between 11% and 20%
4. Between 21% and 30%
5. Between 31% and 40%
6. Between 41% and 50%
7. Between 51% and 60%
8. Between 61% and 70%
9. Between 71% and 80%
10. Between 81% and 90%
11. Between 91% and 100%

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

READ OUT: For the following questions, we would like you to think about the 2022 to 2023 financial year. As a reminder, this study is being carried out independently of HMRC’s tax databases and won’t be matched back to them, meaning we may need to collect certain financial information that you may have already submitted to HMRC.

Q_OTHERWORK. ASK ALL:

Aside from [COMPANY], do you own any other companies, or work for another companies?

MULTICODE OK 1-2. PROMPT TO CODE IF WEB: Please select all that apply

1. I own one or more other companies ADD IF NECESSARY/INFO BUTTON FOR WEB: This refers to owning shares in one or more other companies.
2. I work for one or more other companies as an employee.
3. I do not own any other companies or work for another company [SINGLE CODE]

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_OTHERCOM. ASK IF Q_OTHERWORK = 1:

Are you a Director at any of the other companies that you own?

ADD IF NECESSARY/INFO BUTTON FOR WEB: When referring to Directors, we mean those who are formally registered as being a company Director with Companies House and are legally responsible for running the company.

SINGLE CODE. DO NOT READ OUT IF WEB: Please select one answer

1. Yes
2. No

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_OTHERINCOME_COM. ASK IF Q_OTHERCOM = 1:

Thinking about these other companies that you are both a shareholder and Director at, did you receive any of the follow sources of income from these companies in the 2022 to 2023 financial year?

MULTICODE 1-11. PROBE FULLY AND SELECT ALL THAT APPLY IF WEB: RANDOMISE CODES 1-10

IF WEB: Please select all that apply

1. Salaries
2. Dividends
3. Earning/receiving additional shares
4. Employer pensions
5. Company cars
6. Health cover
7. Company Loans
8. Benefits in Kind
9. Long term disability benefits
10. Bonuses
11. Something else [SPECIFY]
12. None of these

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_OTHERINCOME. ASK ALL:

In the 2022 to 2023 financial year, did you receive any other income?

This should not include income from [COMPANY] or other companies where you are both a Director and a shareholder.

ADD IF NECESSARY/INFO BUTTON FOR WEB: This could be income from another company or companies that you do not own, or something else.

SINGLE CODE. DO NOT READ OUT

1. Yes
2. No

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_OTHERINCOME_TYPE. ASK IF Q_OTHERINCOME = 1:

In 2022 to 2023 did you receive income from any sources other than companies that you take a direct interest in, for example dividends from a share portfolio? IF WEB: Please select how you received this income below.

When answering, please exclude income you received from all of the companies that you are both a Director and shareholder for, such as [COMPANY], as you have already provided us with that information throughout the survey.

MULTICODE 1-12 READ OUT

RANDOMISE CODES 1-10

IF WEB: Please select all that apply

1. Salary
2. Other fees
3. Interest
4. Dividends
5. Rental Income
6. Partnership/Sole trade Income
7. Capital Gains
8. Drawings from a Pension Scheme
9. Income from a Trust
10. State Pension
11. State benefits of any kind, excluding Child Benefit
12. Something else [SPECIFY]
13. None of these

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_COVID. ASK ALL:

To what extent, if at all, did your personal income from all sources increase or decrease because of the coronavirus pandemic?

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

REVERSE SCALE

1. Significantly decreased
2. Somewhat decreased
3. Stayed about the same
4. Somewhat increased
5. Significantly increased

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_RETAINEARN. ASK ALL EXCEPT Q_PROFIT = 1:

Each year, companies can choose to retain some of their profits rather than distribute them to shareholders. What proportion of [COMPANY]’s profits in the 2022 to 2023 financial year was retained within the company?

Would prefer to answer with a figure or a percentage? ADD IF NECESSARY/INFO BUTTON FOR WEB: This is a cumulative figure specified at the bottom of the company’s profit and loss account, stating the retained earnings up until this point in time.

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. £0
2. Up to £10,000
3. More than £10,000 up to £20,000
4. More than £20,000 up to £50,000
5. More than £50,000 up to £100,000
6. More than £100,000 up to £500,000
7. More than £500,000 up to £1 million
8. More than £1 million up to £5 million
9. More than £5 million
10. Don’t know amount, but there were some retained earnings within the company

-98. DO NOT READ OUT: Don’t know if there were retained earnings within the company

-99. DO NOT READ OUT: Prefer not to say

1. 0%
2. Between 1% and 10%
3. Between 11% and 20%
4. Between 21% and 30%
5. Between 31% and 40%
6. Between 41% and 50%
7. Between 51% and 60%
8. Between 61% and 70%
9. Between 71% and 80%
10. Between 81% and 90%
11. Between 91% and 100%

-98 DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_RETAINHOW. ASK ALL EXCEPT Q_RETAINEARN = CODES 1, -98 OR -99:

In what ways did your company choose to retain some of its profits in the 2022 to 2023 financial year?

MULTICODE. READ OUT

IF WEB: Please select all that apply

1. Shareholders did not take dividends
2. Shareholders received a lower amount of dividends
3. You increased your revenue
4. You made a bigger profit than usual
5. Other (SPECIFY)

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_RETAINWHY. ASK ALL EXCEPT Q_RETAINEARN = CODES 1, -98 OR -99:

For what reasons did you choose to retain profits within the company?

MULTICDE OK. PROBE FULLY AND SELECT ALL THAT APPLY

IF WEB: RANDOMISE CODES 1-13

IF WEB: Please select all that apply

1. Source of finance for future growth / expansion activities
2. Source of finance for planned future investments
3. Financial security for the company
4. To secure better borrowing terms from banks / other lenders
5. Liked flexibility in how they can be reinvested
6. Wanted to build up reserves due to concern about future cash flow
7. Wanted to build up reserves as seeking to sell the company on in future
8. More tax efficient
9. Wanted to maintain or increase working capital
10. To fund Director pensions / remuneration
11. Regulatory requirements
12. To cover business costs
13. Advised to do so by a company accountant / agent
14. Other [SPECIFY]

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_FORESTALLING1. ASK ALL. SINGLE CODE:

Thinking again about the 2021/22 financial year, did your company increase the size of dividend payments to Director-shareholders ahead of the following financial year?

1. Yes
2. No

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_FORESTALLING2. ASK IF Q_FORESTALLING1 = 1:

To what extent, if at all, was this increase in payments driven by a tax increase you expected in the next financial year?

SINGLE CODE. READ OUT.

1. This was the main reason for increasing payments of dividends
2. It was one of a few reasons for increasing payments of dividends
3. It did not influence decision making at all

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_FORESTALLING3. ASK IF Q_FORESTALLING1 = 1:

As a result of these increased payments, do you expect to do any of the following to make up for lower company profits, or not?

MULTICODE OK 1-4. READ OUT 1-4

IF WEB: Please select all that apply

1. Take a lower income in the 2022 to 2023 financial year only
2. Take a lower income over a number of years
3. Reduce outgoings or costs elsewhere
4. Other [SPECIFY]
5. None of these – increased payments were possible because of higher profits in the 2021/22 financial year
6. None of these – another reason

-98. CATI: DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Firmographics

READ OUT TO ALL These final questions are about [COMPANY], and will help us put your answers into useful context for analysis.

Q_SECTOR. ASK ALL:

Please could you describe the main product or service that your company sells, or what exactly is made or done in the organisation?

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. Agriculture, Forestry and Fishing
2. Mining and Quarrying; Utilities, Waste Management and Remediation Activities
3. Manufacturing
4. Construction
5. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
6. Transportation and Storage
7. Accommodation and Food Service Activities
8. Information and Communications
9. Financial and Insurance Activities
10. Real Estate Activities
11. Professional, Scientific and Technical Activities
12. Administrative and Support Service Activities
13. Public administration, defence and compulsory social security
14. Education
15. Human Health and Social Work Activities
16. Arts, Entertainment and Recreation
17. Other Service Activities
18. Other [SPECIFY]

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_PSC. ASK ALL:

Would you say your company is a Personal Service Company?

A personal service company is usually defined as a limited company which has been set up to provide the services of a contractor, who is usually the sole shareholder and company Director of the business.

SINGLE CODE. DO NOT READ OUT

IF WEB: Please select one answer

1. Yes
2. No

-98. DO NOT READ OUT: Don’t know

Q_AGE. ASK ALL:

For how many years has your company been operating as an incorporated company?

ADD IF NECESSARY/INFO BUTTON FOR WEB: By this, we mean is it registered as a legally recognised business with Companies House?

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. Less than a year
2. 1 year to less than 3 years
3. 3 years to less than 5 years
4. 5 years to less than 10 years
5. 10 years to less than 20 years
6. 20 years or more

-98. DO NOT READ OUT: Don’t know

Q_FUTUREINTENTIONS. ASK ALL:

Are there plans for your company to do any of the following over the next 5 years?

MULTICODE 1-7. READ OUT

RANDOMISE LIST 1-7

IF WEB: Please select all that apply

1. Change the legal status of the company
2. Sell the company
3. Wind up or fully liquidate the company
4. Pass the company on to another family member
5. Liquidate company assets to pay off debt
6. Float the company on a publicly listed stock exchange
7. Buy or incorporate another company
8. None of the above

-98. DO NOT READ OUT: Don’t know

Q_GROWTHEXP. ASK ALL:

To what extent, if at all, do you expect your company turnover to increase or decrease over the next 12 months? Please provide your best estimate.

SINGLE CODE. PROMPT TO CODE

REVERSE SCALE 1-5

IF WEB: Please select one answer

1. Decrease significantly
2. Decrease slightly
3. Remain about the same
4. Increase slightly
5. Increase significantly
6. Expect to close or sell the business

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_REGIONCOM. ASK ALL:

In what region or nation do you currently reside?

SINGLE CODE. PROMPT TO CODE

IF WEB: Please select one answer

1. North West England
2. North East England
3. Yorkshire & Humber
4. East Midlands
5. West Midlands
6. East of England
7. South East England (excluding London)
8. South West England
9. London
10. Scotland
11. Wales
12. Northern Ireland
13. Outside of the UK

-98. DO NOT READ OUT: Don’t know

-99. DO NOT READ OUT: Prefer not to say

Q_CONSENT. ASK ALL:

Thank you for taking part in this research. HMRC may be conducting some further research on these topics in the future. Would you be happy for someone from Ipsos to recontact you and invite you to participate in this research in the next 6 months? You do not have to commit to anything now, just indicate a willingness to be contacted again in the next 6 months.

SINGLE CODE. DO NOT READ OUT

IF WEB: Please select one answer

1. Yes
2. No
   
   

END SCREEN

READ OUT IF CATI/SHOW SCREEN IF WEB

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