As we settle into the new tax year, many company directors are reviewing their remuneration strategies. The age-old question remains. Should you pay yourself through PAYE salary, dividends or a combination of both?

With several significant tax changes coming into play, it could be worth reconsidering your approach for 2025-26.

Before diving into the comparison, let’s look at some of those important changes which may impact how directors pay themselves.

For shareholders in owner-managed businesses (OMBs), from the 2025-26 tax year, new dividend disclosure rules will come into force.