Because running a business shouldn’t mean running yourself into the ground.

When you’re running a business, especially in the early years, it’s easy to fall into the trap of paying yourself last, if at all. You prioritise suppliers, staff, tax bills, subscriptions and everything else, telling yourself you’ll take what’s left over. But if “what’s left” is unpredictable or too low, it can have a knock-on effect on your stress levels, financial stability and long-term plans.

So here’s the big question: Are you paying yourself properly? And more importantly, are you doing it in the most tax-efficient way?

Salary vs. Dividends: What’s the Best Option?

If you operate as a limited company, you can pay yourself through salary, dividends or a mix of both. Each route comes with pros and cons:

• Salary is a fixed, regular payment. It counts as an allowable business expense and ensures you build up entitlements like a state pension and mortgage eligibility. But it also comes with income tax, USC and PRSI obligations.

• Dividends are payments from your company’s profits (after tax). They’re taxed differently and don’t attract employer PRSI, but they also don’t count towards pensionable earnings or give you the same social welfare cover.

Finding the right balance between the two is key. An accountant can help you structure this so that you maximise your take-home pay while staying compliant.

But What If You’re a Sole Trader?

If you’re self-employed (not operating as a limited company), you can’t pay yourself a salary in the traditional sense. Instead, your income is whatever profit is left after allowable business expenses. That means monitoring your pricing, cash flow and tax planning is even more critical, because your take-home pay depends on what’s left over.

How Much Should You Pay Yourself?

There’s no one-size-fits-all answer, but here are a few rules of thumb:

• Your income should be sustainable, enough to cover personal expenses, build savings and reduce stress.

• It should be strategic and planned in advance, not guessed month by month.

• And it should be tax-aware, structured to minimise your liabilities while still meeting your needs.

If you find yourself dipping into company funds ad hoc or struggling to pay personal bills because everything’s tied up in the business, it’s a sign your current system needs attention.

From Scraping By to Planning Ahead

Too many business owners live in a reactive financial state, waiting to see what’s left before they pay themselves. But building your income into your monthly forecasts changes everything. It allows you to:

• Price your services more accurately

• Understand your business’s true profitability

• Plan for personal financial goals (mortgages, pensions, holidays, school fees and whatever else matters to you)

It’s not just about “taking money out” of your business. It’s about building a business that works for your life, not the other way around.

How We Can Help

At Hyland Johnson Keane, we work with sole traders, directors and freelancers across a wide range of industries to create pay strategies that are fair, efficient and future-focused. Whether it’s building in a salary, planning dividends, or forecasting monthly drawings, we help you find a rhythm that works.

If you’re ready to move from uncertain to intentional when it comes to your pay, let’s talk. Your business is working hard, so should your money.