08/10/2026
Same Β£50,000. Very different take-home.
As an employee, income tax and National Insurance take a big bite before a penny reaches you. Run that same Β£50,000 through your own limited company β small salary plus dividends β and you keep around Β£7,200 more a year.
Why? Dividends don't carry National Insurance, and they're taxed at a lower rate than salary.
Quick note: the Β£7,200 is the video's figure β the exact number moves with your split, rates and allowances, so treat it as illustrative.
Contracting or freelancing through PAYE? This is the conversation worth having.
Comment LTD and we'll send our free take-home checklist.