Generally, for small Companies, dividends are still more tax efficient than salary because they avoid 15.05% Employer’s National Insurance plus, possibly, 13.25% Employee’s National Insurance. So usually it’s better to vote, and pay dividends – but it depends on your income and tax situation.

But occasionally, paying a salary bonus is worthwhile. It reduces your Corporation Tax so long as you pay it within 9 months of the company’s year-end.  And, in certain circumstances, it may be more beneficial than paying dividends e.g. if there are some shareholders who aren’t directors (they would be entitled to a dividend but not a bonus); or if you want to pay a large personal contribution into a pension scheme and need higher earnings (salary not dividends) to justify the pension payment.