Salary, dividends and pensions: Your 2026 pay guide

Salary, dividends and pensions: Your 2026 pay guide

This guide explains that paying yourself from your business is rarely as simple as choosing between salary, dividends or pension contributions. The most effective approach depends on tax thresholds, company profits, cashflow and personal factors such as child benefit, student loans and exposure to higher-rate tax. Focused on the 2025/26 tax year, it outlines the main options and key decision points, serving as a practical reference for planning income, managing tax efficiency and reviewing longer-term savings strategies.