How to Pay Yourself as a Ltd Company Director: Salary, Dividends & More

Founder Tips · 10 min read · Updated 2026-03-23

Learn the most tax-efficient way to pay yourself as a limited company director, including the optimal salary, dividend tax rates, and pension strategies.

Written by Krishna, Founder & HMRC-registered tax agent at TaxRoot.

What is the most tax-efficient salary for a company director in 2025/26?

The most commonly recommended salary is £12,570 per year, which uses up your personal allowance so no income tax is due. At this level, you qualify for state pension credits. However, employer NI is payable at 13.8% on earnings above the Secondary Threshold (£5,000). If your company qualifies for the…

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