{"id":10555,"date":"2022-01-19T14:53:54","date_gmt":"2022-01-19T14:53:54","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=10555"},"modified":"2026-04-15T17:43:01","modified_gmt":"2026-04-15T16:43:01","slug":"how-to-pay-yourself-small-business-owner","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/how-to-pay-yourself-small-business-owner\/","title":{"rendered":"How to pay yourself as a small business owner: salary, dividends, and what&#8217;s changed"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to pay yourself as a small business owner: salary, dividends, and what&#8217;s changed\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tWhen starting a business, how to pay yourself and how much are among the most challenging but ultimately satisfying decisions.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-01-19T14:53:54+00:00\">19 January, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to pay yourself as a small business owner: salary, dividends, and what&#8217;s changed\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/how-to-pay-yourself-small-business-owner\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/timcooper\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/tim-cooper.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Tim Cooper<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Understanding how to pay yourself as&nbsp;an&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/size\/small-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">small business<\/a>&nbsp;owner is essential for managing cash flow, staying tax-efficient, and avoiding compliance issues.&nbsp;<\/p>\n\n\n\n<p>Whether&nbsp;you\u2019re&nbsp;a sole trader or a limited company director, the way you take money from your business directly affects how much tax you pay and how your finances are structured. The right approach is not fixed. It depends on your business type, income level, and current tax rules.&nbsp;<\/p>\n\n\n\n<p>This guide explains your options, how they work, and how to choose the most effective approach for your situation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-takeaways\">Key Takeaways<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sole traders take drawings, not a salary\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Limited company directors typically use salary and dividends\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dividends are usually more tax-efficient but depend on profits\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director\u2019s loans can help short-term but carry tax risks\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your strategy should be reviewed yearly as tax rules change\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-does-it-mean-to-pay-yourself-as-a-business-owner\">What Does It Mean to Pay Yourself as a Business Owner?<\/h2>\n\n\n\n<p>Paying yourself means taking money out of your business in a way that aligns with your legal structure and tax obligations.&nbsp;<\/p>\n\n\n\n<p>There are three main methods:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Drawings (sole traders)\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Salary (via payroll)\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dividends (limited companies only)\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Each&nbsp;option&nbsp;is taxed differently, so choosing the right mix can significantly&nbsp;impact&nbsp;your overall income.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-0a38bfe5-48d7-44eb-b934-14aa781da0ca\">Download your free copy of How to boss your small business banking for advice to help you stay on top of your finances<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-anchor-link\">How much do small business owners make in the UK?<\/h2>\n\n\n\n<p>There are no statistics available on what small business owners&nbsp;pay&nbsp;themselves in the UK.&nbsp;<\/p>\n\n\n\n<p>The closest we can get is to look at average net profits.&nbsp;<\/p>\n\n\n\n<p>According to&nbsp;<a href=\"https:\/\/www.legalandgeneral.com\/files\/library\/protection\/sales-aid\/state-of-the-nation-report-w13220.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Legal &amp; General\u2019s SME report 2019<\/a>, 51% of businesses that are two years old or less have a net annual profit of \u00a350,000 or less.&nbsp;<\/p>\n\n\n\n<p>Those between three and 10 years old turn an average profit of \u00a3261,000. Those aged 10 years or older earn \u00a3342,000 a year on average.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"much-anchor-link\">How to Pay Yourself as a Sole Trader\u00a0<\/h2>\n\n\n\n<p>If&nbsp;you\u2019re&nbsp;a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-sole-traders\/\" target=\"_blank\" rel=\"noreferrer noopener\">sole trader<\/a>, the process is simple.&nbsp;<\/p>\n\n\n\n<p>You take money from your business as&nbsp;drawings, rather than a salary. There is no separate payroll, and you are taxed on your profits, not what you withdraw.&nbsp;<\/p>\n\n\n\n<p>Key points:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You pay Income Tax and National Insurance on profits\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You can take money out at any time\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There is no tax advantage to leaving money in the business\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Your profits are calculated after deducting allowable expenses.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Tired of all those spreadsheets?<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Get started with flexible, HMRC-recognised Sage Accounting software you can access from anywhere.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/accounting\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-3738\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Explore Sage Accounting<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1058881454-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1058881454-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"to-anchor-link\">How to Pay Yourself as a Limited Company Director\u00a0<\/h2>\n\n\n\n<p>Most company directors take a combination of salary and\u00a0<a href=\"https:\/\/www.gov.uk\/running-a-limited-company\/taking-money-out-of-a-limited-company\" target=\"_blank\" rel=\"noreferrer noopener\">dividends<\/a>. <\/p>\n\n\n\n<p>This approach has historically been tax-efficient because dividends are taxed at a lower rate than salary, and they\u00a0don&#8217;t\u00a0attract National Insurance contributions. <\/p>\n\n\n\n<p>The broad principle holds, but the gap has narrowed in recent years as the dividend allowance has been cut.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-taking-a-salary\"><strong>Taking a salary<\/strong>\u00a0<\/h3>\n\n\n\n<p>The most common approach is to pay yourself a salary up to the Primary Threshold for National Insurance \u2014 set at \u00a312,570 for 2024\/25. This keeps you within the National Insurance-free band, means you&nbsp;don&#8217;t&nbsp;pay income tax on the salary (it falls within your Personal Allowance), and the company gets corporation tax relief on the salary cost.&nbsp;<\/p>\n\n\n\n<p>Some directors pay themselves a salary up to the full Personal Allowance of \u00a312,570 even if no National Insurance is due. Others set it at the Lower Earnings Limit \u2014 currently \u00a36,396 \u2014 to preserve their National Insurance record without triggering contributions. The right level depends on your circumstances, and&nbsp;it&#8217;s&nbsp;worth running the numbers with your accountant annually.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-taking-dividends\"><strong>Taking dividends<\/strong>\u00a0<\/h3>\n\n\n\n<p>Once\u00a0you&#8217;ve\u00a0taken a salary, you can pay yourself\u00a0additional\u00a0income as dividends from the company&#8217;s post-tax profits. Dividends are taxed at lower rates than salary \u2014 8.75% for basic-rate taxpayers, 33.75% at the higher rate \u2014 and they\u00a0don&#8217;t\u00a0attract National Insurance.\u00a0<\/p>\n\n\n\n<section class=\"wp-block-sage-container is-constrained is-style-jade\"><div class=\"sage-container__inner\">\n<h2 class=\"wp-block-heading\" id=\"h-500\"><strong>\u00a3500<\/strong><\/h2>\n\n\n\n<p>Dividend allowance for 2024\/25 \u2014 the amount you can receive in dividends without paying tax. This has reduced significantly from \u00a32,000 in prior years.<\/p>\n<\/div><\/section>\n\n\n\n<p><\/p>\n\n\n\n<p>Above the \u00a3500 threshold, dividends are taxed at the relevant rate depending on your total income. For most directors taking a modest salary plus dividends within the basic-rate band, this is still more tax-efficient than taking everything as salary \u2014 but the advantage is smaller than it was a few years ago.&nbsp;<\/p>\n\n\n\n<p>Any dividend can only be paid if the company has sufficient distributable profits. You&nbsp;can&#8217;t&nbsp;pay a dividend that exceeds&nbsp;retained&nbsp;profits \u2014 doing so creates an illegal distribution, which is worth being clear on.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-director-s-loan\"><strong>Director&#8217;s loan<\/strong>\u00a0<\/h3>\n\n\n\n<p>A third option is a&nbsp;director&#8217;s&nbsp;loan \u2014 borrowing money from your company rather than taking a salary or dividend. This can be useful in certain situations, but it comes with rules. If you owe the company money at the end of an accounting period, and the loan&nbsp;isn&#8217;t&nbsp;repaid within nine months of the year-end, the company faces a 32.5% S455 tax charge on the outstanding amount.&nbsp;<\/p>\n\n\n\n<p>Director&#8217;s&nbsp;loans are a legitimate tool but shouldn&#8217;t be used as a way to avoid tax \u2014 HMRC watches them closely.&nbsp;Use them for short-term cash flow, not as a substitute for proper remuneration planning.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-0a38bfe5-48d7-44eb-b934-14aa781da0ca\">Download your free copy of How to boss your small business banking for advice to help you stay on top of your finances<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-pay-yourself-in-a-partnership\">How to pay yourself in a partnership\u00a0<\/h2>\n\n\n\n<p>In a partnership, profits are shared between the partners.&nbsp;So,&nbsp;you and your partners pay yourself simply by withdrawing your agreed share of the profits.&nbsp;<\/p>\n\n\n\n<p>Partners must also keep specific business records.&nbsp;<\/p>\n\n\n\n<p>One nominated partner keeps the records, but all partners are responsible for the records.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-salary-vs-dividends-which-is-better\">Salary vs Dividends: Which Is Better?\u00a0<\/h2>\n\n\n\n<p>There is no single answer. Most directors use a combination.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-typical-approach-nbsp\">Typical approach:&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Take a small salary within tax-free thresholds\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Top up income with dividends\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-comparison-nbsp\">Comparison:&nbsp;<\/h3>\n\n\n\n<p><strong>Salary<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxed through PAYE\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Subject to National Insurance\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduces corporation tax\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>Dividends<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower tax rates\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No National Insurance\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Must come from profits\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-much-should-you-pay-yourself\">How Much Should You Pay Yourself?\u00a0<\/h2>\n\n\n\n<p>This depends on several factors:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your total income\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tax thresholds\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business profitability\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Personal financial needs\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-general-guidance\">General guidance:\u00a0<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Stay within tax-efficient thresholds where possible\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Avoid pushing income unnecessarily into higher tax bands\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Review your strategy annually\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-making-tax-digital-affect-this\">How does Making Tax Digital affect this?\u00a0<\/h2>\n\n\n\n<p>Making Tax Digital for Income Tax (MTD for IT) is changing the way sole traders and landlords report their income to HMRC. From April 2026, those earning over \u00a350,000 will need to&nbsp;submit&nbsp;quarterly updates digitally rather than an annual&nbsp;Self Assessment&nbsp;return.&nbsp;<\/p>\n\n\n\n<p>For limited company directors, MTD for IT applies to any self-employment or rental income you report personally \u2014 not to the company&#8217;s own corporation tax filing, which&nbsp;remains&nbsp;unchanged. If you take a salary and dividends,&nbsp;you&#8217;ll&nbsp;still need to report those through a personal tax return (or its MTD equivalent), and the same rules about allowances and thresholds apply.&nbsp;<\/p>\n\n\n\n<p>The practical implication is that\u00a0<a href=\"https:\/\/www.gov.uk\/self-employed-records\/what-records-to-keep\" type=\"link\" id=\"https:\/\/www.gov.uk\/self-employed-records\/what-records-to-keep\">keeping good records<\/a>\u00a0throughout the year matters more than ever. MTD-compatible software makes this much easier \u2014 your transactions are\u00a0categorised\u00a0as you go, so\u00a0there&#8217;s\u00a0less scrambling at year-end.\u00a0<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Turn your payday into a yay day with Sage Payroll<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Fly through your pay run in 4 simple steps with a payroll solution that&#8217;s secure, accurate and compliant.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/payroll\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-15343\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Explore Sage Payroll<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Bright-Path-Consulting_FY20_SBC-Accounting-Payroll_10-Copy-1-1214x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Bright-Path-Consulting_FY20_SBC-Accounting-Payroll_10-Copy-1-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-pay-your-own-taxes\">How to pay your own taxes\u00a0<\/h2>\n\n\n\n<p>Self-employed people and partners are taxed on the profits you make, not on your drawings.&nbsp;<\/p>\n\n\n\n<p>Self-employed people pay this tax through the&nbsp;Self Assessment&nbsp;system, including&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-payment-on-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">payments on account<\/a>. Partners share the&nbsp;business\u2019s&nbsp;profits, and each partner pays tax on their share via the&nbsp;Self Assessment&nbsp;system.&nbsp;<\/p>\n\n\n\n<p>Make sure you understand which&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/allowable-expenses-self-assessment-tax-return\/\" target=\"_blank\" rel=\"noreferrer noopener\">expenses are tax-deductible<\/a>.&nbsp;<\/p>\n\n\n\n<p>Limited companies pay&nbsp;<a href=\"https:\/\/www.gov.uk\/corporation-tax\" target=\"_blank\" rel=\"noreferrer noopener\">corporation tax<\/a>&nbsp;on their profits.&nbsp;<\/p>\n\n\n\n<p>As a director, you also pay income tax and National Insurance through PAYE on your salary, and&nbsp;<a href=\"https:\/\/www.gov.uk\/tax-on-dividends\" target=\"_blank\" rel=\"noreferrer noopener\">tax on any dividends<\/a>&nbsp;you&nbsp;earn through&nbsp;the business over the current dividend allowance of \u00a32,000.&nbsp;<\/p>\n\n\n\n<p>Dividends are classed as personal earnings, so you do this through the&nbsp;Self Assessment&nbsp;system.&nbsp;<\/p>\n\n\n\n<p>To&nbsp;maximise&nbsp;tax efficiency, company directors often pay themselves a salary up to the&nbsp;<a href=\"https:\/\/www.gov.uk\/income-tax-rates\" target=\"_blank\" rel=\"noreferrer noopener\">personal allowance<\/a>&nbsp;\u2013 then the rest in dividends. This can work out slightly more&nbsp;favourably&nbsp;compared to employment or other self-employed&nbsp;structures&nbsp;but limited companies are administratively more onerous.&nbsp;<\/p>\n\n\n\n<p>Your accountant or payroll function will instruct you on how to pay each tax you owe to HMRC.&nbsp;<\/p>\n\n\n\n<p>And if you have any queries on managing your tax affairs, contact your accountant or a tax adviser<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-should-you-review-your-pay-strategy\">When Should You Review Your Pay Strategy?\u00a0<\/h2>\n\n\n\n<p>You should review how you pay yourself:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At the start of each tax year\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When tax rules change\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When your income increases\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When your business structure changes\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Even small&nbsp;adjustments can lead to meaningful tax savings.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-the-best-approach-for-you\">What&#8217;s\u00a0the best approach for you?\u00a0<\/h2>\n\n\n\n<p>The honest answer&nbsp;is:&nbsp;it depends, and it should be reviewed at least once a year, ideally before the tax year starts. The most tax-efficient split between salary and dividends shifts as allowances change, as your income grows, and as your personal circumstances evolve.&nbsp;<\/p>\n\n\n\n<p>A few things to think about: if your income is likely to push into the higher-rate band, dividend tax becomes more significant. If&nbsp;you&#8217;re&nbsp;building a pension, salary and employer contributions can be tax-efficient in ways that dividends&nbsp;aren&#8217;t. If you have a spouse&nbsp;who&#8217;s&nbsp;a shareholder, splitting dividends between you may use both allowances more effectively.&nbsp;<\/p>\n\n\n\n<p>Running this properly with an accountant \u2014 even just an annual conversation \u2014 typically&nbsp;pays for&nbsp;itself in tax savings many times over.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-pay-yourself-as-a-small-business-owner-faqs\">How to pay yourself as a small business owner FAQs<\/h2>\n\n\n\n<p id=\"h-how-to-pay-yourself-as-a-small-business-owner-faqs\">\u00a0<\/p>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1776271019926\"><strong class=\"schema-faq-question\">What is the most tax-efficient way to pay yourself as a small business owner?\u00a0<\/strong> <p class=\"schema-faq-answer\">For limited companies, a mix of salary and dividends is usually\u00a0the most\u00a0efficient.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776271035037\"><strong class=\"schema-faq-question\">Can I pay myself only dividends?\u00a0<\/strong> <p class=\"schema-faq-answer\">No. You need profits to pay dividends, and many directors still take a salary for tax and compliance reasons.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776271045302\"><strong class=\"schema-faq-question\">Do sole traders pay themselves a salary?\u00a0<\/strong> <p class=\"schema-faq-answer\">No. Sole traders take drawings and are taxed on profits.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776271059391\"><strong class=\"schema-faq-question\">Can I take money out of my business at any time?\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes,\u00a0for sole traders. For limited companies,\u00a0they\u00a0must follow salary, dividend, or loan rules.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776271071331\"><strong class=\"schema-faq-question\">What happens if I take too much money from my company?\u00a0<\/strong> <p class=\"schema-faq-answer\">You may trigger tax liabilities or\u00a0director\u2019s\u00a0loan penalties.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final Thoughts\u00a0<\/h2>\n\n\n\n<p>Knowing how to pay yourself as a small business owner is not just about taking income. It is about doing it in a way that is tax-efficient, compliant, and sustainable.&nbsp;<\/p>\n\n\n\n<p>The right structure depends on your business type and financial goals. For most limited company directors, combining salary and dividends&nbsp;remains&nbsp;the most effective approach, while sole traders&nbsp;benefit&nbsp;from simplicity but less flexibility.&nbsp;<\/p>\n\n\n\n<p>If you are unsure, reviewing your approach with an accountant each year can help you stay aligned with changing tax rules and&nbsp;maximise&nbsp;your income.&nbsp;<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Turn your payday into a yay day with Sage Payroll<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Fly through your pay run in 4 simple steps with a payroll solution that&#8217;s secure, accurate and compliant.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/payroll\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-15343\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Explore Sage Payroll<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Bright-Path-Consulting_FY20_SBC-Accounting-Payroll_10-Copy-1-1214x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Bright-Path-Consulting_FY20_SBC-Accounting-Payroll_10-Copy-1-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-15795 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-brexit-business tag-business-finances business_type-small-business business_type-medium-sized-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg\" class=\"card-post__image\" alt=\"man in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T15:28:18+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-account-reconciliation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tAccount reconciliation: What it is and best practices\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tAn important account reconciliation guide including the basics, best practices, and why account reconciliation is essential for businesses.\n\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30283 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-business-finances tag-financial-education business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/strategic-budgeting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-768x478.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-1300x810.jpg 1300w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T15:12:53+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tStrategic budgeting explained: the finance team&#8217;s role in long-term planning\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-30270 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-business-finances tag-reporting business_type-small-business business_type-medium-sized-business industry-saas\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/saas-revenue-recognition\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-684x384.jpg\" class=\"card-post__image\" alt=\"A man using a computer and protecting himself from phishing\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T12:11:12+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tA guide to SaaS revenue recognition with examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-9993 post type-post status-publish format-audio has-post-thumbnail hentry category-money-matters tag-business-finances tag-cash-flow tag-start-business tag-sound-advice-podcast post_format-post-format-audio business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/sound-advice-how-to-fund-your-startup-sam-jones\/?scroll=1\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-684x384.jpg\" class=\"card-post__image\" alt=\"Sam Jones\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-810x810.jpg 810w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path d=\"M9.75 1.5C8.793 1.5 8 2.293 8 3.25v8.377a.8.8 0 0 0 0 .243v4.38c0 .957.793 1.75 1.75 1.75h5.5c.957 0 1.75-.792 1.75-1.75v-4.377a.8.8 0 0 0 0-.243V3.25c0-.957-.792-1.75-1.75-1.75zm0 1.5h5.5c.147 0 .25.102.25.25V11h-6V3.25c0-.148.102-.25.25-.25m-4.012 7.989a.75.75 0 0 0-.739.761v4.5A4.76 4.76 0 0 0 9.749 21h2v2a.76.76 0 0 0 .216.537.74.74 0 0 0 .534.223.76.76 0 0 0 .535-.223.74.74 0 0 0 .216-.537v-2h2A4.76 4.76 0 0 0 20 16.25v-4.5a.76.76 0 0 0-.216-.537.74.74 0 0 0-.535-.223.75.75 0 0 0-.75.76v4.5a3.24 3.24 0 0 1-3.25 3.25h-5.5a3.24 3.24 0 0 1-3.25-3.25v-4.5a.755.755 0 0 0-.469-.707.8.8 0 0 0-.293-.055zM9.5 12.5h6v3.75c0 .147-.102.25-.25.25h-5.5a.24.24 0 0 1-.25-.25zm3 1a.997.997 0 0 0-1 1 .997.997 0 0 0 1 1 .997.997 0 0 0 1-1 .997.997 0 0 0-1-1\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-21T15:03:16+01:00\">21 May, 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business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/sound-advice-start-small-business-mart-drake-knight\/?scroll=1\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-684x384.jpg\" class=\"card-post__image\" alt=\"Mart Drake-Knight\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-810x810.jpg 810w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path d=\"M9.75 1.5C8.793 1.5 8 2.293 8 3.25v8.377a.8.8 0 0 0 0 .243v4.38c0 .957.793 1.75 1.75 1.75h5.5c.957 0 1.75-.792 1.75-1.75v-4.377a.8.8 0 0 0 0-.243V3.25c0-.957-.792-1.75-1.75-1.75zm0 1.5h5.5c.147 0 .25.102.25.25V11h-6V3.25c0-.148.102-.25.25-.25m-4.012 7.989a.75.75 0 0 0-.739.761v4.5A4.76 4.76 0 0 0 9.749 21h2v2a.76.76 0 0 0 .216.537.74.74 0 0 0 .534.223.76.76 0 0 0 .535-.223.74.74 0 0 0 .216-.537v-2h2A4.76 4.76 0 0 0 20 16.25v-4.5a.76.76 0 0 0-.216-.537.74.74 0 0 0-.535-.223.75.75 0 0 0-.75.76v4.5a3.24 3.24 0 0 1-3.25 3.25h-5.5a3.24 3.24 0 0 1-3.25-3.25v-4.5a.755.755 0 0 0-.469-.707.8.8 0 0 0-.293-.055zM9.5 12.5h6v3.75c0 .147-.102.25-.25.25h-5.5a.24.24 0 0 1-.25-.25zm3 1a.997.997 0 0 0-1 1 .997.997 0 0 0 1 1 .997.997 0 0 0 1-1 .997.997 0 0 0-1-1\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-20T17:00:12+01:00\">20 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">36 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow small\u00a0start-ups can take shape with little money and a big idea\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When starting a business, how to pay yourself and how much are among the most challenging but ultimately satisfying decisions.<\/p>\n","protected":false},"author":699,"featured_media":3313,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[135],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,75],"imagine_tag":[242,312,109],"coauthors":[352],"class_list":["post-10555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Tim Cooper","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/12\/GettyImages-536907925_super.jpg","imagine_tags":{"242":"Banking","312":"Payments","109":"Small 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