The most tax efficient way to pay yourself as a limited company director

As a limited company director, if you're not paying yourself strategically, then you could be missing a trick and overpaying on taxes that you don't need to! Make sure you take a combination of both dividends and a salary where possible and we'll explain the different scenarios that could help you save and earn more. 

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Chapters

• 0:13 So what do we mean by a director’s salary?
• 1:13 How is a director’s salary taxed?
• 2:21 What are the advantages of taking a director’s salary?
• 3:20 What are the disadvantages of taking a director’s salary?
• 4:06 What are dividends?
• 4:42 What is the tax on dividends?
• 5:44 What are the advantages of taking dividends?
• 6:36 What are the disadvantages of taking dividends?
• 7:56 So, how much should you pay yourself as a company director?
• 8:35 1. Pay yourself at least the NIC Lower Earnings Limit (LEL)
• 10:03 2. Pay yourself at least the Primary Threshold
• 11:21 3. Pay yourself a higher salary when you can claim employment allowance
• 13:14 Other ways to pay yourself through a limited company
• 13:50 Get help with your director’s salary