Blog / Paying yourself
Paying yourself from your company: salary, dividends and loans
How UK company owners take money out: salary and dividend splits, director's loan accounts and shareholdings, explained by Chartered Tax Adviser Simon Jacobs.
Can you use a director's loan to buy something personal?
Yes, a company can lend a director money for a personal purchase, but it gives no tax relief. Loans over £10,000 and loans left unrepaid after the company's year end can both lead to tax charges.
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Is a £12,570 salary plus dividends always the best split?
No. Salary and dividends are taxed at different rates in each band, so the standard split suits some levels of drawings and not others. The answer comes from a calculation on your own figure.
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How much should a director pay themselves? Work backwards
Start with the monthly amount you need personally, then choose between salary, dividends and a director's loan to reach it. The right mix depends on that figure and on what the company can pay.
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What if you pay personal costs on the business card?
Personal spending on the business card is charged to your director's loan account. It then has to be repaid or cleared with extra salary or dividends, and those carry tax of their own.
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Three tax moves for agency owners in 2026/27
Three straightforward, legitimate moves for UK agency owners this tax year: a salary set to your allowance, tax-free company interest, and your ISA allowance.
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What do you actually give away when you pay someone in shares?
Paying a consultant in equity protects cash flow and quietly costs you control. Drop below 75% and there are decisions you can no longer make on your own.
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How much should an agency founder actually pay themselves?
Most founders treat their pay as a personal withdrawal rather than a business decision. Here is a cleaner way to think about salary, dividends, and what to leave in.
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