The best way to pay yourself is through your own Limited company. You go on your own payroll which reduces company tax and then top up your personal income each month with a dividend paid from profits. This dividend is free of National Insurance (NI) and taxed at a lower rate than normal income. You should always check that your NI is fully up to date at hmrc.gov.uk.
The latest news from PMC Partnership incorporating Pomfreys Accountants – 15 July 2022.