If I go limited, how should I pay myself — salary, dividends, or a mix?

The usual approach is a small salary plus dividends because it's generally more tax-efficient: salary is deductible against corporation tax and counts towards your state pension, while dividends don't attract National Insurance and are taxed at lower rates than income tax — you get a £500 dividend allowance each year on top of your £12,570 personal allowance. There's no single 'optimal' salary, but many directors set it around the personal allowance or just below the National Insurance threshold to keep things simple. One thing to watch: dividends can only be paid from profits after corporation tax, and you need proper paperwork — board minutes and dividend vouchers. For mortgages, lenders usually look at salary plus dividends together, and for pensions, only your salary counts as relevant earnings for tax relief — dividends don't. It's worth getting personalised advice before you set the split, as the best mix depends on your total income.