As mentioned previously, I did a lot of accounts for small businesses, some were limited and some just sole traders who needed a helping hand. One such business (hopefully none of the directors are on here or I could
myself
) had 3 directors, each holding a share worth £1 each, of which 3 were issued. They were also all self employed. From the business, they received dividends - which were pretty impressive amounts as it was an extremely profitable company - and only "earned" a couple of quid under the threshold for paying tax. Essentially, at that particular time, they were legally earning around £8,500 and not paying tax. Their dividends were taxable in accordance with the current rates at the time, but this still worked out beneficially for them. They also had director's loans, but I wasn't involved in that so no idea if that would also be beneficial - I'm guessing it would be or why do it (I believe the company pays tax on them, but it wasn't my area of expertise so can't really say without digging).
Rather cleverly,
they bought a cheap building between them, then rented it to the company as premises, earning themselves a massive payment each month in rental income! This more than covered the refurbishment required as well as giving them a wad of cash! Somehow this was tax free but I never understood why (their official accountant looked after that part when I submitted my part of the accounts to him).