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I am a director of a limited company in the UK and I am the only employee.

If I paid myself a salary of £100k and on top of that I paid myself £100k in dividends (post corporate tax), how much tax would I have to pay on the £200k? Ignore NI tax and corporate tax

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+100

Congratulations. You make HMRC very happy.

Here’s what you pay from April;

15.05% employer NI contributions on about £92,000.

13.5% employee NI on about £42,000 of your income, plus 3.5% on £48,000.

Your total income is over £125,000, so you lose the £12,570 tax free amount. You pay 40% of £100,000 income, about 35% on £50,000 dividend, and about 39% on £48,000 dividend.

Your company profit is your revenue, minus expenses, minus £100,000 income, minus the employer NI contribution. You pay 19% on the profit.

The sane way is £800 per month salary, about £44,000 annual dividend, about £40,000 a year in a director’s pension fund.

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