# Investments for a UK director — the basics, honestly

*Source: https://credicorp.co.uk/investments-for-a-uk-director/*

This article is not regulated financial advice. We are not authorised to give personal recommendations; we lend money to limited companies. What follows is general information of the kind a friend who happens to know the subject would tell you over a coffee. For personal investment advice please use a FCA-authorised independent financial adviser — the FCA has a free [register](https://register.fca.org.uk/) to confirm anyone is genuinely authorised.

## First, fix the basics

- **An emergency fund.** 3-6 months of household costs in an easy-access savings account before any investing.

- **Expensive debt cleared.** Anything over 8% APR — credit cards, payday loans — beats most investment returns net of tax.

- **Pension first.** Employer contributions are free money. As a director, even a SIPP with basic-rate relief beats most other instruments on tax efficiency.

## Then think about three pots

A useful frame for personal investment is three pots: **short term** (cash savings, premium bonds — protected, liquid, 0% to 5% returns), **medium term** (Stocks & Shares ISA — tax-free wrapper, £20,000 per year allowance, 5-10 year horizon), and **long term** (pension and / or general investment account — 10+ year horizon, equity-heavy).

## Why diversified, low-cost funds beat stock picking

The evidence is overwhelming and goes back fifty years. Most actively-managed funds underperform a simple low-cost global index tracker after fees over any decade. The two cost numbers to look at on a fund factsheet are the ongoing charges figure (OCF) — anything over 0.50% should make you ask why — and the platform fee — anything over 0.45% on a £50k portfolio is excessive in 2026.

## The wrappers, in order of usefulness

- **Workplace pension** — if you have one, max the employer match.

- **SIPP (Self-Invested Personal Pension)** — for directors, the company can pay in as an allowable expense, reducing corporation tax.

- **Stocks & Shares ISA** — £20,000 per year, tax-free growth and withdrawals.

- **General Investment Account** — for surplus beyond ISA/SIPP allowances; uses your dividend and CGT allowances.

## Red flags

- Anything promising guaranteed double-digit returns. The risk-free rate in 2026 is about 4-5%; everything above that involves real risk.

- Unregulated firms — check the FCA register. If they are not on it, walk away.

- Crypto pitched as investment rather than speculation. The FCA does not protect crypto holdings; treat anything in it as money you can afford to lose.

- “Property crowdfunding” platforms that lend to a single project; if it goes wrong your capital is at risk and there is no FSCS protection.

## The role of your accountant

A good chartered accountant will help you think about director’s pension contributions, salary-versus-dividend mix and the use of an investment company for surplus profits. A regulated IFA will help you build the personal portfolio. The two roles overlap but are separately regulated — make sure both are properly qualified.

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Credicorp Limited — UK lender to limited companies (Company No. 16093826). credicorp.co.uk