How to pay yourself a director of a ltd company from April 2026 as the dividend rates increase by 2 points If you’re making £100k but only need £50k personally, you can be around £6k/year better off using a Ltd Company vs sole trader. Simple director pay plan: ✅ £12.5k salary is an expense to the business and uses up your tax free allowance. ➡️ Corp tax drops to ~£20k ➡️ ~£1k Employer NI ~£4k income tax Versus around £31k tax as a sole trader, that’s a real tax saving. ⚠️ Caveat: This only works
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