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"Fair" isn't easily measured though is it? If someone was a very high earner and had an income tax bill of, say, £1m per year they may feel that they are paying a "fair" amount of tax in that they're paying considerably more than 99%+ of the population. They may then seek loopholes elsewhere to...

Hmmm. If you're doing any of these you will be paying less tax overall than simply paying yourself a full salary: - Paying yourself a dividend. - Paying anyone else (such as your wife) a dividend. - Paying an extra employee (such as a wife or other relative) a small salary.

...but less than the obligation if you paid you and you alone a full salary from the company?

It's not as black and white as classifying things in one of two ways: - A scheme set up to allow people to be tax efficient so it's OK (eg ISAs and pensions) - A loophole being abused to reduce tax obligations As I've said on another thread, anyone who owns a small business as a limited...