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From April 2013, you should pay an increased salary of £641 a month (from £624 last year). At this level, you will pay no income tax or national insurance.
You will then also be able to take a dividend of up to £30,382 (net cash) without paying any additional income tax or national insurance (of course, this is dependent upon available company profits)
This means a director of a limited company can withdraw a total of £38,074 during the 2013/2014 tax year, without having to pay any additional income tax or national insurance.
Do be careful as this total amount is £902 less than it was in 2012/2013. That means it could cost you £225 extra in tax if you pay the same amount as in 2012/2013!!
You should seek our advice if you have other sources of income, such as tax credits or pension income and these additional income streams do impact on the figures above.
For more information on how this all works, we’ve produced a video which you can watch by clicking here