Quick Answer
For most owner-managed companies the efficient approach is a modest salary set around the National Insurance thresholds, which preserves your State Pension record and is deductible against corporation…
For most owner-managed companies the efficient approach is a modest salary set around the National Insurance thresholds, which preserves your State Pension record and is deductible against corporation tax, with the balance drawn as dividends.
The exact split depends on your other income, whether the Employment Allowance is available to your company, and how much you actually need to draw. Dividends can only be paid out of accumulated post-tax profits, so the company has to have the reserves. We run the numbers rather than applying a rule of thumb.
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