How do I pay myself dividends?

People who run their own limited company usually pay themselves a tax efficient combination of dividends and a salary. You can only pay yourself dividends from the company’s profits, and there are strict rules about how this process works.

Read our guide about making dividend payments to yourself and other company shareholders.

Will I pay tax on dividends?

Dividends are a form of income so they are subject to tax, but at a different rate to usual income tax. There’s also a separate tax allowance for dividend income, which you can use on top of the Personal Allowance. Our online dividend tax calculator will help you work out how much tax you can expect to pay on your dividend income.

Watch our short video about paying yourself a salary and dividends, or learn more about our online accounting services for limited companies.