How to Pay Yourself from a Limited Company: A Guide for Adult Industry Professionals

How to Pay Yourself from a Limited Company - Adult Industry Guide | SWFA

If you’ve set up a limited company for your work in the adult industry, whether you’re a content creator, escort, domme, cam model or kink performer, you might be wondering: how do I actually pay myself? Isn’t it all my money anyway?

Well, sort of, but not exactly. Once you’ve gone limited, you and the business are separate legal entities. That means you can’t just take money out like it’s your personal wallet. But don’t panic, in this guide, we’ll explain everything you need to know about how to pay yourself from a limited company.

You’ll learn the difference between salary and dividends, how to stay tax-efficient, when to pay yourself, how to protect your privacy, and how to avoid common mistakes. This is written specifically for adult industry professionals who want to run a legit business and keep more of what they earn, without the financial fluff.

What’s the Difference Between Salary and Dividends?

Let’s break it down:

• A salary is a regular wage you pay yourself through payroll (PAYE - Pay As You Earn).

• A dividend is a share of profit you get as a company owner (shareholder), after taxes and expenses have been paid.

What is a Director’s Salary?

Salaries are taxed at source through PAYE. You’ll usually pay Income Tax and National Insurance, and can contribute to things like pensions or claim maternity pay.

What is a Dividend?

Dividends are taxed separately from salary, usually at a lower rate, and there’s no National Insurance to pay. They’re only allowed when the business has profit after tax.

📌 Related: Sole Trader vs Limited Company – Which is Best for You?

How to Pay Yourself Tax-Efficiently

Here’s the typical structure for tax-efficient pay as a limited company director in the UK:

• A low salary (usually under the National Insurance threshold – £1,047/month for 2025/26)

• The rest paid as dividends

Why it works:

• Salaries are a deductible expense, which reduces your Corporation Tax

• Dividends are taxed more gently than regular income

But! Dividends can only be taken from profits. That means after all business expenses and Corporation Tax have been accounted for. If you take dividends without profit? You’re asking for HMRC trouble.

Do These Rules Apply to Sex Workers and Adult Creators?

Yes - 100%. Whether you’re filming content, doing in-person sessions, selling clips or running subscription accounts, HMRC treats you like any other business owner.

That means:

• You can claim business expenses (e.g. toys, costumes, lighting - see this guide)

• You must follow rules on payroll, dividend declarations, and tax submissions

• You have every right to run a legit, limited company, even if your work is stigmatised elsewhere

If you’re not confident about your bookkeeping yet, download our “Help! What’s Bookkeeping?” guide - it’s £45 and written for new self-employed creators.

When (and How) to Pay Yourself as a Director

Here’s what the process looks like in practice.

Paying a Salary

• Register as an employer and set up PAYE through HMRC

• Run payroll each month, even if it’s just for you

• Submit Real Time Information (RTI) reports to HMRC

• Pay yourself the same way any employee gets paid

Paying Dividends

• Only pay dividends if your company is in profit

• Create dividend vouchers and meeting minutes (yes, even if it’s just you)

• Keep records of all payments and declaration dates

• Space dividends out - some do this monthly, quarterly, others once a year

This structure helps you stay compliant, build up a credit history, and avoid panic around tax deadlines.

Read further about the difference between being a Sole Trader versus a Limited Company here 

Common Mistakes to Avoid

🛑 Thinking “it’s all my money” and skipping records

🛑 Taking dividends when your business isn’t in profit

🛑 Paying yourself randomly without payslips or vouchers

🛑 Forgetting to save for Corporation Tax or VAT

🛑 Mixing personal and business accounts

If you're doing any of the above - don’t worry. We've fixed these things for hundreds of clients. It’s never too late to get back on track.

How to Stay Discreet When Paying Yourself

We get it, privacy matters. Here’s how we help adult workers protect their identities while staying compliant:

Registered Office Address

Use a registered address service so your home address doesn’t appear on Companies House.

Using a Trading Name

You don’t need to use your stage name, but you can set up a business trading name for your bank or invoices if needed.

Keeping Personal & Business Income Separate

This protects your records and your privacy. Always use separate business bank accounts and digital tools like FreeAgent or Xero.

Summary: Paying Yourself as a Limited Company Director

To recap:

• You can pay yourself via salary, dividends, or both

• Most directors use a low salary + dividends to stay tax-efficient

• Dividends must come from profit, and you must record everything

• Discretion is possible - but only if you set things up properly

• Help exists - and it won’t come with judgement or confusing jargon

Need Help with Director Pay, Payroll or Profit Planning?

At SWFA, we specialise in supporting adult industry professionals - from creators to escorts, dommes to dancers. We’ll help you get paid properly, stay tax-efficient, and build a business that works for you.

👉 Contact us today and let’s get you sorted.