13/06/2025
How I’d Pay Myself as a Solo Director in 2025
If I were a solo director this year, here’s exactly how I’d pay myself, and avoid a January tax panic.
Let’s be honest, most limited company directors are either:
Underpaying themselves and missing out on tax relief
Overdrawing and creating a tax nightmare
Or just guessing what’s “safe” to take
We see it every week:
Salary only, feels tidy, but you miss pension credits and personal allowances
Salary + Dividends – better, if structured right
“I just take money when I need it” – the director’s loan trap
There’s no one-size-fits-all.
But there is a smarter baseline if you’re running a lean consultancy, creative agency, or service business on your own.
Here’s what I’d be doing in 2025:
£6,396 salary
-Below the NI threshold, but still builds your state pension
Quarterly dividends
-Taken from real, after-tax profits, not just the bank balance
-Spread out to smooth personal tax cash flow
Company-paid pension contributions
-Reduces corporation tax
-Doesn’t hit your personal allowance
Track the director’s loan account monthly
-Don’t let random withdrawals turn into unplanned tax bills
Review tax position BEFORE January
-Not after the deadline when it’s too late to fix anything
If you’re still guessing how much you can “take” without triggering a tax mess, let’s fix it.