What should I do with my company profits?

You're a business owner with profits building up in your company, and you’re probably asking a simple question with no obvious answer:

“What’s the sensible thing to do with this money?”

The frustrating part is that most options sound reasonable: dividends, pensions, leaving money in the business. Yet very few business owners feel confident they’re choosing the right one for them, or right mix.

In this guide we explain your options, why some choices cost you more tax than others, and how to align profit extraction with your long-term financial goals.

This guide explains:

• The real profit utilisation options available

• When each option makes sense and when it doesn't

• How profit extraction affects tax and personal wealth

• Which strategies are typically most efficient for UK limited company directors and business owners

  
  

First, just like with your own personal finances, you always want to have a capital float for planned, and unplanned, large expenditures. That goes without saying for good planning.

So let's assume you have that in place, and that you don't need to re-invest in the business.

What do you do with the rest? and with the expectation that this will crop up again every year?

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What Business Owners Are Asking Right Now

Here are the real questions we see directors asking:

• “Do I need to take profits out of my company every year?"

• “Should I pay myself more salary, or take dividends?”

• “Is it better to invest profits inside the company or personally?”

• “How do retained profits affect my long-term plan?”

• “Why are pension contributions one of the best uses of profits?”

• "My accountant says I should use my profits, but how?"

We know from the experience of working with our business owner and director clients that this people like you usually fall into one (or more) of these groups:

• Profits are building up faster than personal spending needs

• Income is comfortable, but long‑term wealth feels vague

• The business is doing well, but you’re overly dependent on it

• You’re trying to be tax‑efficient without creating future problems

If those sound familiar, this article is for you.

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Quick Answer: What Most Directors Should Do With Company Profits

You have four main options:

1. Leave profits in the company as retained earnings
   

2. Save business cash in a deposit account
   

3. Invest in corporate-level or personal investments
   

4. Use profits for tax-efficient pension contributions

Let's take each in turn.

So now we know this, let's talk strategy.

Option 1 - Keeping Profits in the Company - Pros and Cons

Leaving profits in the company simply means keeping them as retained earnings rather than extracting them immediately.

🔍 What Happens

• Your company pays Corporation Tax on profits (currently up to 25% depending on profit levels).
  

• The remaining amount sits in your company bank account.

✔ Pros

• Immediate access for business needs Retained profits provide flexibility for growth, hiring, investment, or unexpected costs.
  

• No immediate personal tax You avoid income tax or dividend tax until money is extracted.
  

• Supports business stability Holding cash reserves can strengthen the balance sheet and reduce financial stress.
  

• Useful for short- to medium-term planning Especially effective if profits may be needed in the business in the near future.
  

• Can support business sale planning Retained profits may form part of exit planning if a sale is expected.

  
  

❌ Cons

• Corporation tax is still payable Profits are taxed before being retained, reducing the amount available.
  

• Money sits idle Cash held in the company will lose value over time due to inflation.
  

• Increased dependency on the business Your personal wealth remains tied to the company’s success and risk.
  

• May complicate long-term planning Excess retained profits without a clear strategy can lead to inefficiency or poor decisions later.

  
  

🟢 When this works well

• When the business genuinely needs capital for growth, resilience, or planned future investment.
  

• When personal income needs are already met and there is no immediate requirement to extract funds.
  

• When retained profits are being held for a clearly defined purpose rather than by default.
  

• When short‑term tax deferral is intentional and part of a wider, reviewed strategy.
  

• When personal wealth planning exists separately and retained profits are not relied on long term.
  

• When you plan to sell in the near future and know that you can benefit from Business Asset Disposal Relief at a lower tax rate than extracting the profit another way.

🟠 When this can cause problems later

• When retained profits quietly become the main long‑term wealth strategy without a clear exit plan.
  

• When cash builds up well beyond what the business realistically needs, concentrating risk unnecessarily.
  

• When future tax on extraction is deferred without understanding how or when it will eventually be paid.
  

• When access, flexibility, or personal independence becomes more important than short‑term tax efficiency.
  

• When profits have accumulated through inertia rather than deliberate, reviewed decision‑making.

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Option 2 - Putting Retained Profits in Deposit Accounts to Get Interest - Pros and Cons

If you don’t want to take money personally but want a return on cash, you can put surplus profits in business savings/notice accounts.

🔍What Happens

Your money earns interest tax-efficiently inside the company.

✔ Pros

• Keeps cash accessible and liquid Funds remain available for business use if required.
  

• Earns a return on idle cash Better than holding excess funds in a current account.
  

• Low risk Capital is typically protected (within banking limits). This is now £120,000 per institution. For example, a business account with Lloyds Bank with £200,000 held would have £120,000 protected, in the event of Lloyds being unable to give your money back.
  

• Simple to manage Requires minimal ongoing oversight or complexity.
  

• Useful as a temporary strategy Ideal while you decide on longer-term profit deployment.

  
  

❌ Cons

• Corporation tax applies to interest earned Interest income is taxed within the company.
  

• Returns may not beat inflation Especially in real terms over the long run.
  

• Still trapped inside the company Personal tax will apply when money is eventually extracted.
  

• Not a long-term wealth strategy Cash savings rarely support long-term personal financial independence.
  

• Can delay better planning decisions Parking cash for too long can lead to missed opportunities.

  
  

🟢 When this works well

• When the money is genuinely short‑term, needed for liquidity, or earmarked for a known future business use.
  

• When protecting capital and maintaining easy access matters more than long‑term growth.
  

• When holding cash forms part of a deliberate risk‑management or contingency strategy.
  

• When interest income is viewed as a temporary holding return rather than a wealth‑building solution.
  

• When inflation risk and post‑tax returns are understood and regularly reviewed.

🟠 When this can cause problems later

• When large cash balances are left in deposit accounts for long periods with no clear plan.
  

• When interest earned fails to keep pace with inflation, quietly eroding real value over time.
  

• When cash becomes a default parking place for profits rather than a strategic decision.
  

• When reliance on deposits delays more suitable long‑term planning for surplus profits.
  

• When the role of company cash in personal long‑term wealth planning is unclear.

This is often a good interim strategy while you decide how to use the profits longer term.

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Why might you decide on option 1 or 2?

Some business owners intend on leaving excess profits in the business, and then plan to withdraw the cash when they sell the business, and benefit from a reduced 14% Capital Gains Tax rate, due to Business Asset Disposal Relief (BADR), which used to be known as Entrepreneur's Relief.

BADR used to be 10% for many years, but BADR is 14% at the time of writing (December 2025) and will be rising to 18% from April 2026. This means this option is less attractive from a tax-efficiency point of view, but it may still be right for you.

If you do go down this route, you still need to decide what you will do with the cash in the meantime. Realistically you should be aiming for that money to keep place with inflation to retain it's long term value.

The impact of inflation eroding your capital is very real, particularly if you look over longer time horizons.

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Option 3 — Investing Through the Company - Pros and Cons

You can invest company profits in corporate investment vehicles, such as:

• Stocks and shares portfolios
  

• Commercial property
  

• Other business assets
  

🔍What Happens

Instead of extracting profits personally, your company can invest surplus cash directly.

✔ Pros

• Keeps money working instead of sitting in cash Investing company profits can help offset inflation and improve long-term returns.
  

• No immediate personal tax You don’t trigger income tax or dividend tax at the point of investment.
  

• Maintains liquidity and flexibility Investments can often be sold if cash is needed in the business.
  

• Useful for medium-term planning Particularly effective if you expect to extract funds later or sell the business.
  

• Can support exit planning Retained and invested profits can enhance business value if structured correctly.

  
  

❌ Cons

• Corporation tax still applies Profits are taxed before being invested, and investment income may be taxed again.
  

• Investment gains may affect tax reliefs Holding investments can impact eligibility for Business Asset Disposal Relief (BADR).
  

• More complex tax treatment Dividends, interest, and capital gains inside a company are taxed differently and require careful planning.
  

• Money is still “trapped” in the company You will eventually pay tax again when extracting funds personally.
  

• Higher risk if poorly structured Investing inside a trading company without advice can create unexpected tax or regulatory issues.

  
  

🟢 When this works well

• When surplus profits are genuinely long term and not required for day‑to‑day business use.
  

• When investment risk is understood and aligned with the company’s wider objectives.
  

• When investments are made deliberately rather than simply accumulating excess cash. If done right, dividends received by investments held in ltd co.s are tax-exempt, however gains are generally taxed when sold under Corporation Tax.
  

• When the impact on future extraction, tax, and access has been considered.
  

• When company investments form part of a broader, reviewed strategy rather than a standalone decision.

🟠 When this can cause problems later

• When investments inside the company become a proxy for personal long‑term wealth planning with no thought to how you'll get it out to use the money personally when needed.
  

• When access to capital is restricted at times when personal flexibility becomes important.
  

• When investment risk is taken without fully understanding the tax consequences inside a company.
  

• When changes in business circumstances force investments to be sold at an inconvenient time.
  

• When the long‑term implications for exit, retirement, or succession haven’t been thought through.

Investing inside the company can allow you to grow profits before extraction. But be careful, investment income retained in a company may be taxed differently, and gains may attract additional tax depending on structure and timing.

You can also invest outside of the company, and in some cases we recommend clients do this, to diversify risk away from the business. You can read more about this here: https://www.labfp.co.uk/post/business-owners-how-to-save-tax-grow-your-wealth-and-reduce-risk

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Option 4 — Use Company Profits for Pension Contributions - Pros and Cons

🔍 What Happens

Your company uses surplus profits to make employer pension contributions on your behalf.

✔ Pros

• Reduces corporation tax Employer pension contributions are usually an allowable business expense under the “wholly and exclusively” rule.
  

• No income tax or National Insurance Unlike salary or dividends, pension contributions are not taxed on the way in.
  

• Moves money out of the company tax-efficiently You extract value without triggering personal tax.
  

• Builds long-term personal wealth Pension funds provide compound growth in a very tax-advantaged environment.
  

• Assets are outside your estate for IHT until 2027 Pensions are typically protected from inheritance tax, but after 2027 they will be included in your estate.
  

• Excellent for long-term and exit planning Pensions help transition wealth from business dependence to personal financial independence.

  
  

❌ Cons

• Money is locked away until pension access age Currently 55 (rising to 57 in 2028), which limits short-term flexibility, unless you're already above this age.
  

• Annual Allowance limits apply Typically £60,000 per year, although carry forward can increase this.
  

• Requires forward planning Over-funding without considering future income needs can be inefficient.
  

• Not suitable if you need cash personally today Pensions are a long-term strategy, not a short-term cash solution.
  

• Rules and allowances can change Pension legislation evolves, sometimes becoming more generous and sometimes less.

🟢 When this works well

• When pension contributions are used deliberately as part of a long‑term wealth strategy.
  

• When allowances are understood and contributions are planned rather than ad‑hoc.
  

• When tax efficiency is balanced with a clear understanding of future access and income needs.
  

• When pensions form one component of a diversified personal wealth plan.
  

• When contributions are reviewed regularly as business profits and personal goals evolve.

🟠 When this can cause problems later

• When pension contributions are driven solely by tax relief rather than long‑term suitability.
  

• When too much wealth becomes locked away without considering future flexibility or access.
  

• When allowances or future tax rules are assumed rather than actively monitored.
  

• When pension planning is disconnected from wider business and personal financial decisions.
  

• When contributions continue out of habit rather than ongoing relevance.

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Why might you decide on option 4?

Some business owners instead fund their pension as much as possible each year because it's tax-efficient and it diversifies away your own personal wealth from the business.

If you were planning on a nice big sale valuation when you come to retire, it's a lot stressful extracting the value you think you're owed, if you have a healthy pension to fall back on.

Each of the four outlined options can be sensible in the right context. The challenge is understanding how they interact, and which trade‑offs matter most for you over time.

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If you’re like most business owners we speak to, you’re not trying to pay as little tax as possible, you’re trying to build a secure and bright future, have options when you sell, and can stop worrying about what happens to all the value you’ve built.

That’s exactly where tailored financial planning helps.

Want personalised numbers for you and your business?

Book a free profit-extraction strategy call here:

https://calendly.com/labfp/introductory-meeting-45min

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Let's play out the two different approaches/strategies with a business owner client of ours (name changed of course and no, that's not his picture either).

Patrick, is aged 45, and owns PR123 Ltd., a PR company, which make profits of £100,000 a year after all staff remuneration. He likes to take £40,000 dividends a year to top up the salary he pays himself.

Approach One & Two Compared

Approach	1 (No Pension)	2 (£50,000 into Pension)
Pre-tax Profits	£100,000	£100,000
Pension Contribution	£0	£50,000
Corp Tax (at 22.75%)	£22,750	£9,500
Dividend	£40,000	£40,000
Retained Profits (left in company)	£37,750	£500

What are the differences?

Patrick has more left in the business in Approach One, however, he's paid £13,250 more in Corporation Tax for the privilege.

In Approach Two, he has put £50,000 into his pension, hopefully to grow ahead of his retirement, plus left £500 in the business.

In both cases, he's taken out the dividend he wanted.

In approach 1, he receives total benefit (dividend, pension contribution and retained earnings) of £77,750.

In approach 2, he receives total benefit of £90,500.

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What does the long-term picture look like?

After 10 years, he'll have put £500,000 into his pension in the pension scenario. He'll have paid £95,000 Corporation Tax (assuming corporation tax rates have remained the same).

In the no pension scenario, he'll have £377,500 in the business bank account, and paid £227,500 in Corporation Tax.

So on the face of it, leaving the money in the business is a bad idea.

But what about what compounding does to the money after 10 years, and what about the tax you would pay on getting the money out of the business, or out of the pension?

Let's look at two scenarios:

1. He leaves it as retained profits in the company, moves it around and gets a 3% interest each year in a business deposit account and takes the money out using BADR when he sells the company in 10 years' time.
   

2. He invests it in the pension and gets a 5% return each year.

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1. Keeping Money in the Business (3% growth, BADR on exit)

Year	Retained Profits – No Growth	Retained Profits Pot (3% growth)
1	£37,750	£38,882
2	£75,500	£78,931
3	£113,250	£120,182
4	£151,000	£162,670
5	£188,750	£206,432
6	£226,500	£251,508
7	£264,250	£297,936
8	£302,000	£345,756
9	£339,750	£395,011
10	£377,500	£445,744

BADR tax rate: 14%

Tax: £62,404

Net proceeds: £383,340

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2. Making £50,000 a Year Pension Contributions (5% growth)

Year	Pension Contributions to Date	Pension Value (5% growth)
1	£50,000	£52,500
2	£100,000	£107,625
3	£150,000	£165,506
4	£200,000	£226,282
5	£250,000	£290,096
6	£300,000	£357,100
7	£350,000	£427,455
8	£400,000	£501,328
9	£450,000	£578,895
10	£500,000	£660,339

Effective tax: 15% (Using a combination of tax-free cash and basic-rate taxable pension withdrawals in retirement)

Tax: £99,051

Net proceeds: £561,288

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Which Strategy Might Suit You?

Difference = £177,948 more from the pension approach.

This is down to a higher level of growth compounding, which you would expect, but also a much more beneficial tax rate on the way in and better on the way out.

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What do I do now?

It is clear from the figures that putting excess profits into pension is the most tax efficient route for most business owners, and even more so for those businesses who do not qualify for BADR when they sell, such as some companies involved in property.

If you put money into pension, you need to work out how to invest it and how much risk to take.

You also need to be aware that you won't be able to draw it all out as one lump sum at retirement without being heavily taxed.

Whereas if you take it all out as a lump sum from the business at the point of sale, you then need to decide what to do with it.

For some people that flexibility is useful, for others it proves a challenge to work out where to put it, to provide the required income for whatever comes next, probably retirement.

Action - work out whether you would prefer to keep it in the business or put it into a pension. Either way, you need to make sure it is working for you and is growing or earning interest!

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The bigger risk for most business owners isn’t choosing the “wrong” option with their profits.

It’s making perfectly sensible decisions in isolation, and only realising years later that they limited their future choices.

Whether any of the four options we've outlined are right for you depends less on the option itself, and more on how joined‑up your overall planning is.

That’s why we created a short quiz to help business owners sanity‑check how tax‑efficient their current approach actually is, both now and in the future.

🚨 Take our free quiz - see how tax-efficient you are 🚨

We've designed a quiz to help you understand how tax-efficient you're being, both in the short-term and long-term.

Try it here and get personalised results for what you should do next, plus get our free guide 'The Business Owner's Guide to Financial Independence'.

Take free quiz

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Jamie is Lab Financial Planning Managing Director, and a Certified Financial Planner™.

He advises business owners to help with their tax-efficient financial planning, and ensuring that they and their family are well protected, in any scenario.

If you'd like to discuss your financial planning, why not get in touch to see if we can help?

Remember, there are no stupid questions. Everyone has a different level of knowledge about money and planning their finances. We speak in plain English to help take away the fear and empower you to use your money well.

You can drop Jamie an e-mail here: jamie@labfp.co.uk

Or, you can book in a free introductory call, to discuss your situation, here: https://calendly.com/labfp/intromeeting

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The information contained within this blog post should not be taken as financial advice, as it does not take account of personal circumstances, which would affect advice given. Should you wish to talk to us about personalised advice for you, we'd be happy to do so.

Tax rates are based on the tax year 2025/26.

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FAQ

Q: What’s the difference between taking profits as salary vs dividends vs pension?

• Salary

  • Subject to income tax and National Insurance (both employee and employer).

  • Corporation tax relief is available, but NI makes it the least tax-efficient way to extract profits beyond a modest level.

  • Often used up to the personal allowance or NI thresholds for state pension purposes.

    
    

• Dividends

  • Paid from post-corporation tax profits.

  • No National Insurance, but dividend tax applies (after the £500 dividend allowance).

  • Flexible and popular for income, but not tax-deductible for the company.

    
    

• Pension contributions

  • Paid by the company as an allowable business expense, reducing corporation tax.

  • No income tax or NI on contribution.

  • Money is locked away until later life, but typically the most tax-efficient way to extract surplus profits for long-term wealth.

    
    

In practice: most business owners benefit from a blend, using salary and dividends for lifestyle income, and pensions for long-term planning and tax efficiency.

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Q: How does Business Asset Disposal Relief affect my profits on sale?

BADR reduces the capital gains tax payable when you sell or close your company, but only at that point in time.

• BADR applies a reduced capital gains tax rate (currently higher than it used to be) on qualifying business disposals.
  

• It only applies when you sell shares or wind up the company, not while profits remain inside it.
  

• You must meet conditions around shareholding, employment, and trading status.
  

• BADR is not guaranteed forever. Rates and rules have changed before and may change again.
  

The key planning point: Leaving profits in the business means deferring tax, not avoiding it, and accepting political and legislative risk along the way.

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Q: Can I leave profits in the company indefinitely?

Yes. But it’s rarely the optimal long-term strategy on its own.

You can legally retain profits in your company for many years, but there are trade-offs:

Pros

• Flexibility and control

• Funds available for reinvestment or future planning

• Potential access to BADR on exit
  

Cons

• Cash may grow slowly compared to pensions or diversified investments

• Exposure to future tax rule changes

• Company risk (creditors, trading risk, legislative changes)

• Eventually, tax is usually paid when profits are extracted or the business is sold
  

For many owners, the better question isn’t “Can I leave profits in the company?” but“Which profits should stay in the company and which should be moved out, and how?”

These decisions rarely exist in isolation. The right answer depends on your income needs, growth plans, exit strategy and long-term goals.

This is exactly what good financial planning for business owners is designed to solve.

How to Think About Debt

(and Why Flexibility Is Your Real Financial Superpower)

Perhaps I should start by saying: this isn’t the way to think about debt — it’s just how I think about it.

But maybe, after reading this, you’ll think a little differently too.

They say there are are no new ideas under the sun, and this one owes a nod to something I once read from Morgan Housel - my absolute favourite non-fiction writer - for the way he communicates big, and sometimes complicated, money concepts.

His thinking helped shape how I view debt. To view it not just as a financial instrument, but as something that quietly reshapes the way we experience life.

Why Debt Narrows Your Future

When most people think about debt, they think about numbers.

The interest rate. The monthly payment. Whether it’s “cheap” or “expensive.”

And that’s fair enough, those things matter. Debt, after all, isn’t inherently bad. Used wisely, it can be a powerful tool.

Mortgages, business loans, even student debt, these can all unlock opportunities that would otherwise be out of reach. Some call it using leverage.

But there’s a hidden cost that rarely gets talked about. One that isn’t measured in pounds or percentages. Debt doesn’t just cost money.

It costs flexibility.

And that flexibility is what determines how much of life you can comfortably handle when things don’t go to plan.

The Hidden Cost: Flexibility

Imagine your life as a squiggly line, like a stock market chart. Yes, you can picture it, going up and down over time. Sometimes you're up, and sometimes you're down.

Those ups and downs represent the natural volatility of life: promotions, redundancies, illnesses, family events, unexpected moves, market crashes, political curveballs, even moments where you simply change your mind about what you want.

Now, picture a band or “channel” surrounding that line, above and below it.

That band represents how much volatility you can handle before things start to go wrong.

When you carry little or no debt, that band is wide, like you can see illustrated here.

You could lose your job for six months and recover.

You could move cities, take time off, or make a career change without breaking.

But as you take on more debt, that band narrows.

A six-month job loss becomes unaffordable after three.

The roof on your home leaking and needing to be replaced was once manageable, but now becomes catastrophic.

The flexibility to adapt, to handle life’s inevitable surprises, starts to disappear.

At high levels of debt, even small disruptions can become existential threats.

That’s true for individuals, businesses, and even entire countries.

How To Think About Debt: Why This Matters

Volatility isn’t a theoretical risk, it’s reality.

I'm not sure when you felt it, but for me it was 2016. Trump getting in power in the U.S. and the Brexit vote here in the U.K. signalled the end of the something. The world has, by common consensus, become more volatile.

Over the next 10, 20, or 30 years, the odds that you’ll experience at least one of the following are 100%:

• A recession

• A health issue (your's or someone close to you)

• A political or economic shock

• A family emergency

• A major life change

  
  

The most dangerous thing about debt isn’t the interest rate. It’s that it reduces your ability to respond to the unexpected.

There’s a reason some Japanese businesses have lasted over 500 years. Researchers studying these ultra-resilient firms often find one common trait: they carry little or no debt, and they hold plenty of cash.

That’s how they’ve survived wars, recessions, natural disasters, and regime changes. They weren’t the most aggressive or leveraged companies, they were simply the most adaptable.

And adaptability is everything. I don't know what's going to happen tomorrow. Hell, I don't even know what's going to happen today, do you?

The Real Asset: Optionality

At its core, managing your financial life, personally or professionally. It is about one thing: having options.

The ability to make changes, endure setbacks, or take advantage of opportunities when they arise.

Debt restricts those options.

That doesn’t mean you should never borrow. Used carefully, debt can be constructive. But next time you consider taking some on, try asking a different question.

Instead of:

“Can I afford the payments?”or “Is the rate low?”

Ask:

“How much flexibility am I giving up by doing this?”

Because that’s the real cost. And in an unpredictable world, flexibility is arguably your most valuable asset.

Planning With a Margin of Safety

In engineering, a margin of safety means designing a bridge to hold 30 tonnes, even if the heaviest expected load is only 10.

Why? Because uncertainty exists. Maybe the materials weaken. Maybe two trucks arrive at once.

The margin of safety exists not because failure is likely, but because it’s possible.

In financial planning, the principle is exactly the same.

A margin of safety is the buffer between what you expect and what you can endure.

It’s the gap between your income and spending, your projected investment returns and your real needs, your risk tolerance and your resilience.

And the further you stretch yourself, financially, emotionally, or logistically, the smaller that margin becomes.

What It Looks Like in Practice

• Save more than you think you’ll need.

  Markets don’t always behave, and life doesn’t follow spreadsheets.
  

• Live below your means. Not for the sake of frugality, but to give yourself room for the inevitable curveballs: redundancy, illness, helping family.
  

• Invest with realistic expectations. Plan for 5% returns even if long-term averages are 7%. That 2% gap is your safety margin.
  

• Hold some cash. It won’t earn much, but it buys you time. And time is flexibility.

  
  

The biggest financial risks aren’t always the obvious ones. They’re the surprises, the things you didn’t see coming or couldn’t predict.

A margin of safety protects you from those blind spots. It’s not pessimism, it’s realism.

Optionality Is the Real Wealth

To me, true wealth isn’t about having more money. It’s about having more options.

The freedom to walk away from a rubbish job. To take a sabbatical. To help a family member. To sleep well at night.

A margin of safety protects those options.

Without it, small disruptions become big problems.With it, big disruptions become survivable.

Having a margin of safety in your financial plan isn’t a lack of confidence, it’s an act of humility.

It’s saying:

“I don’t know what the future holds, but I know it won’t go exactly according to plan.”

And that mindset, more than any number on a spreadsheet, is what creates lasting financial wellbeing.

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Jamie is Lab Financial Planning Managing Director, and a Certified Financial Planner™. He advises business owners and makes sure that their money, life and business are aligned in working towards their goals.

If you feel like you need help with your financial planning, why not get in touch to see if we can help?

Remember, there are no stupid questions. Everyone has a different level of knowledge about money and planning their finances.

We speak in plain English to help take away the fear and empower you to use your money well.

You can drop Jamie an e-mail: jamie@labfp.co.uk

Or, you can book in a free introductory call, to discuss your situation, here: https://calendly.com/labfp/intromeeting

The Changing World of Work and Why Meaning Matters More Than Ever - Financial Planning for Business Owners

Bob Dylan, The New Yorker

“The times they are a-changing.” — Bob Dylan, 1964

That song came out over sixty years ago, but it’s never felt more relevant than it does today.

Back then, a job for life was common. You started at a local company, they looked after you, and you looked after them. You climbed the ladder and retired with a gold watch and a farewell party.

I don’t know anyone today who has that experience, or will again.

Back then, typewriters and desk phones were cutting-edge technology.

Now, it’s AI. AI in everything.

In 1964, the professional classes, lawyers, accountants and managers were seen as higher status and better paid than those who worked in the trades. And to be fair, that’s mostly been true ever since.

But that’s changing.

AI is increasingly able to take on work traditionally done by professionals. The roles we do now, and I include financial planning in that, will have to evolve. That’s not something we should only fear; it also provides an opportunity. An opportunity to get better, to focus on the parts of work that truly make a difference.

Still, there’s no denying that for some industries, this change is unsettling. You only have to look at the headlines. Tech companies cutting jobs and replacing people with AI in pursuit of efficiency. Tech is at the forefront, but it won’t stop there. The wave is coming for every sector.

That’s the bad news.

But in typical rational-optimist fashion, there’s reason to be hopeful.

Four Reasons for Optimism

1. AI can’t be a carpenter, a plumber, or an electrician.

For years, we’ve had a shortage of skilled tradespeople. Maybe this shift will re-balance things and bring renewed respect for those who work with their hands.

2. AI-fatigue is real.

Things created by humans - imperfect, heartfelt, and authentic - will become more valued. Social media has even coined a term for computer-generated content overload: AI slop.

You can always tell when something lacks human touch. Whether it’s a ChatGPT-written post full of hashtags, or a song that sounds perfect but lacks emotion, what connects us isn’t perfection, it’s lived experience.

3. New roles will emerge.

Work evolves. It always has and always will. Nobody in 1964 was a cyber-security consultant. Today, it’s a booming field. The same will happen again. New types of meaningful work will grow alongside AI.

4. Many people don’t find their current work fulfilling.

Ask managers whether they enjoy what they do, and many will quietly admit that they don’t. The future could give us a chance to redefine what work looks like. Not just more efficient, but more meaningful.

Maybe that’s optimistic. Maybe not.

Either way: the times they are a-changing.

What Is Meaningful Work, Anyway?

When you strip it back, most of us don’t just want to get paid.

We want our work to mean something. To matter. To connect with our values and make some kind of difference, even a small one.

Meaningful work isn’t about “changing the world” in grand gestures. It’s about doing something that feels significant, purposeful, and aligned with who you are. If you stopped doing it tomorrow, someone, somewhere, would notice.

Multiple studies suggest that people who feel their work is meaningful tend to report higher levels of job satisfaction, psychological well-being, and resilience, and lower levels of stress and burnout, compared with those who regard their work as purely instrumental or transactional.

The opposite is also true.

Even well-paid work that feels meaningless eventually grinds people down. It’s exhausting to spend years doing something that doesn’t feel like it matters.

Three Questions to Ask Yourself

If you’re reflecting on your own role and your business, these questions are a good starting point:

• Am I proud of what my business contributes?

• Does it reflect what I care about?

• If my role disappeared tomorrow, what parts of it would I actually miss?

  
  

The answers can be revealing. And as AI takes over more repetitive, process-driven tasks, we’re left with a rare opportunity, to make work more human, not less.

The Opportunity Ahead

This next chapter of the working world doesn’t have to be dystopian. It could be the moment where we shift focus, from simply doing more, to doing what matters.

A future where more of us make things, fix things, create things, or help people.

That might sound idealistic, but isn’t that the point? We spend 40 hours a week working. Meaningful work shouldn’t be a luxury; it should be what we strive for.

It’s one of the biggest drivers of wellbeing we’ve got. And as the world of work continues to change, asking what would make my work meaningful? might just be the most important question any of us can ask.

Making Sure Your Money Works for You - Financial Planning for Business Owners

If you’re your own boss, the beauty is that you get to create the environment you work in.

It should be enjoyable, purposeful, and reflective of the life you actually want to live.

And if it isn’t? Well, that’s where we come in.

At Lab Financial Planning, we help business owners ensure their money works for them and not the other way around.

We help you align your finances with your purpose, so that work feels meaningful and your future feels secure.

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Jamie is Lab Financial Planning Managing Director, and a Certified Financial Planner™. He advises business owners and makes sure that their money, life and business are aligned in working towards their goals.

If you'd like to discuss your financial planning, why not get in touch to see if we can help?

Remember, there are no stupid questions. Everyone has a different level of knowledge about money and planning their finances. We speak in plain English to help take away the fear and empower you to use your money well.

You can drop Jamie an e-mail here: jamie@labfp.co.uk

Or, you can book in a free introductory call, to discuss your situation, here: https://calendly.com/labfp/intromeeting