An accountant is advising company directors to reassess their remuneration packages due to recent tax adjustments.

Mark Leadley, a divisional director at JF Hornby & Co, suggests that amendments, either subtle tweaks or wholesale changes, may be needed to ensure director renumeration packages are tax-efficient.

Mr Leadley's advice comes after recent government updates in various taxation areas.

"Business owners are focused on the day-to-day running of their companies, managing their teams, processes, and keeping an eye on the bottom line," said Mr Leadley.

"All this can mean they take their eye off the ball when it comes to paying themselves, and they might be handing over more in income tax than necessary."

Mr Leadley is encouraging all directors who take their salaries through a combination of dividends and PAYE to evaluate whether their current arrangement is the most beneficial.

The government recently increased the rates of corporation tax payable on a company's profits.

The new tax rate for earnings over £250,000 has risen from 19 per cent to 25 per cent.

The tax-free dividend allowance now sits at £500, meaning directors will be taxed on dividends exceeding this amount at rates dependent on their income tax bands.

These rates are set at 8.75 per cent for the basic rate, 33.75 per cent for the higher rate, and 39.35 per cent for the additional rate.

Mr Leadley described the changes as a "kick in the teeth" for business owners, considering the increased tax and reduced allowances.

"It’s crucial for business owners who pay themselves through these methods to be aware of the changes and take necessary measures to ensure they are as tax efficient as possible," he explained.

While Mr Leadley is supportive of business owners aiding the UK economy through taxes, he underlines the role of accountants in maintaining compliance with HMRC guidelines efficiently.

He said: "We work with more than 1,000 businesses - everything from sole traders to companies of significant size and turnover - to help them plan their tax affairs in a compliant, efficient manner.

"We don't expect business owners to be up to date with the latest taxation information - that’s our job, it’s why we are here and it’s what we excel at."