Being an owner of a company, there will come a time when there is a need to decide how to remunerate yourself so that you can reap the benefits of your profits. There are a few ways to do so, but each having its own pros and cons. You can either draw out your own salary, pay out dividends or do a combination of both. Even though it may seem that either method would give you directly what your company earns, that is not always the case as each method serves to have some sort of compensation or tax scheme that may influence your decision.
Drawing a salary
One way of remuneration of a director in a company is through drawing a salary and paying yourself. When drawing a salary, you are liable to paying personal income tax, which is dependent on your income bracket.