New limited company, IT consultant, husband and wife scenario

[WordIsBond]

For the sake of pedantry, the above often isn't true (but admittedly tax savings can be very modest).

So, I forgot something too, LOL. Pedantry for the win. Accountants are supposed to be pedantic about tax.

So dividend tax applies after Corp Tax is deducted, so nets out to about 6% of the original amount. So it's about 25% vs 20%. So OP could make his wife a director to justify a salary, pay her £8K a year, and save £400 in tax. Enough to pay airfare to someplace warm for a weekend in January.