Fiducia TogetherDirectors' remuneration planning
Deciding the salary and dividend mix. An annual decision, not a permanent one.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Owner-directors typically take a salary up to a threshold plus dividends, balancing income tax, National Insurance and corporation tax.
Why it matters
The optimum moves as rates, thresholds and allowances change, and they have changed substantially in recent years.
What it looks like in practice
Considerations beyond tax: pension contributions from the company are deductible and avoid personal tax; salary preserves National Insurance credits and supports mortgage applications; dividends require distributable reserves.
What to watch out for
Setting it once and carrying it forward. And drawing money monthly with no decision, which becomes an overdrawn director's loan account.
Where to get proper advice
Your accountant. Review it every April.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.