Agreed, though I think it's even more a disincentive to pay yourself more than 100K, even if you're mostly on dividends, once you've already seen ~20% come off for corporation tax.

For third parties unfamiliar with the setup, to pay yourself those dividends that take you from £100k to £110k, you need to take £12500 of biz profit, then £2500 goes to corporation tax, then £6000 to the taxman in personal taxes, leaving you with £4000 from that initial £12500 profit(!) which "feels" like a 68% tax to, say, a contractor in that situation (note: I am not a contractor).

But that's the thing, you don't pay yourself in cash - you move most of your expenses to the company (cars, houses, investments, pension payments etc), so that money is only touched by corp tax. You take out the bare minimum that you cannot reasonably claim as business expense, squeezing your taxable income all the way down. When you reach a point where that's not possible, either you are making way more than 150k or you have a poor accountant.

At >£100k it is better to create offshore structure, but they are honing on that bit as well.