The "wheeze" you talking about is just avoiding double taxation. The business pays corporation tax on the profit it makes : while salaries are an expense, divid

The "wheeze" you talking about is just avoiding double taxation. The business pays corporation tax on the profit it makes : while salaries are an expense, dividends are not. So you're paying 19% on revenue above the "minimum wage" plus your expenses, and then tax again on the dividends. Whether this works or for you or not depends very much on circumstances. If you're willing to have cash build up in the business it works, if you want to take home over £60k/year gross it starts making less sense.