Director Pay and Dividends
24 articles on director pay and dividends for UK limited company directors, contractors, sole traders and small businesses.
Director Pay and Dividends
A direct comparison of paying yourself a bonus versus a dividend as a limited company director in 2025/26. We work through the real tax numbers on both sides, including corporation tax, employer NI, and dividend tax. You will see which route leaves more cash in your pocket.
Director Pay and Dividends
A bonus is tax-deductible for the company but triggers income tax and National Insurance. A dividend is paid from post-tax profits but faces lower personal tax rates. This article compares both routes with real 2025/26 figures.
Director Pay and Dividends
You can pay a dividend to a spouse who is not an employee or director, provided they own shares in the company. But HMRC’s settlement legislation can reallocate that income back to you if the shares were gifted solely to reduce tax. Here is how to structure shareholdings properly, avoid the settlement trap, and make alphabet shares work for your family.
Director Pay and Dividends
Many directors ask if they can use company funds to pay their personal tax bill. The answer is no. Here's what happens if you try, and the correct way to handle your personal tax liabilities.
Director Pay and Dividends
You cannot legally declare a dividend from a loss. We explain the rules on distributable profits, what happens if you do it anyway, and the practical steps to take if your company has no retained earnings.
Director Pay and Dividends
Taking a dividend before the board minutes are signed is surprisingly common. It creates a legal and tax risk that can be fixed, but only if you act correctly. Here is what you need to know about the timing of dividend paperwork.
Director Pay and Dividends
A director's loan account records money owed between you and your limited company. If you take more out than you put in, the company must pay S455 tax at 33.75% unless you repay within 9 months and 1 day of year end. This guide covers everything from setting it up to avoiding the tax traps.
Director Pay and Dividends
Taking a dividend before the board minutes are signed is more common than most directors realise. We explain the legal position, the HMRC risks if the paperwork is never done, and how to fix it retrospectively if you have already taken the money.
Director Pay and Dividends
Dividends must be paid from distributable profits. If your company made a loss in the current year, you cannot declare a dividend unless retained profits from prior years cover it. Paying a dividend from a loss is illegal and triggers serious tax and director liability consequences.
Director Pay and Dividends
Dividend tax rates 2025/26 remain at 8.75% (basic rate), 33.75% (higher rate), and 39.35% (additional rate). The dividend allowance drops to £500. This article models the specific scenario where dividends push a director into a higher tax band for savings income, costing more than expected.
Director Pay and Dividends
The 2025/26 dividend tax rates are 8.75% (basic rate), 33.75% (higher rate) and 39.35% (additional rate), with a £500 allowance. If you take dividends quarterly from your limited company, you need to track your total income across the year to avoid unexpected tax bills. This guide shows you how to calculate each quarter's payment safely.
Director Pay and Dividends
Most dividend planning assumes one annual payment. But if you take dividends quarterly, the tax band management changes. Here's how to calculate your 2025/26 dividend tax liability, manage your £500 allowance, and avoid accidentally hitting the higher rate band mid-year.