24/04/2026
The recent 2% increase in dividend tax (basic & higher rates) has definitely tightened things up, but it hasn’t flipped the script. For most directors, a smart mix of salary + dividends is still the most tax-efficient way to pay yourself.
What has changed is the gap — it’s smaller now. That means your personal income split needs more attention than ever.
📊 The right mix isn’t “set and forget” — it should be reviewed annually to stay efficient and avoid unexpected tax bills.
At Glow Accounts, we still typically recommend the salary + dividends approach, while helping clients plan ahead so tax never comes as a surprise.
💡 The dividend tax rise is real, but good planning keeps you in control.
If you need support, Glow Accounts is here to help.
📱01892 267 750
📧 [email protected]