Own Ltd Company - are dividends worth it any more?

[gmaz]

I have a Ltd company for my part time work earning about £20K pa. I'm paying myself £12570 salary, and already put £4K into a pension so have about £4K left at the end of the tax year. With corp tax at 19% and dividends taxed at 8.75% surely it isn't worth it to use that approach any more (apart from the £500 dividend tax free)?

I'm thinking I just give myself a £4K bonus at the end of March in my payslip.

Edited by gmaz on Monday 2nd March 14:23

[Eric Mc]

Simple answer - that depends, but generally, not really.

[trickywoo]

Dividends saves the NI which becomes more relevant when you go above £12570 as you’ll be paying both employees and employers NI.

I wouldn’t say a limited is worth it itself anymore and if you don’t actually need the limited liability there are probably better ways of structuring.