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Limited Company salary and/or dividends

What's the most tax efficient director's salary?

 

As a director you’re legally separate from your limited company even if you’re also the owner. This means you’re not allowed to simply keep the profits for yourself in the same way a sole trader can in their business.

Instead, you’ll need to decide how much to pay yourself. The most tax-efficient way to take an income from your own limited company is normally through a combination of a low salary (in the same way as any other employee) and  dividend payments.

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