What’s the Most Tax Efficient Director’s Salary in 2022/23?

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

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 an any other employee) and dividend payments.

The information presented in this article is provided as general guidance, it should only be used as the basis for further research or requesting professional advice.