DislikedThat is not strictly true either. In the UK someone who operates through a limited company and pays themselves dividends instead of a salary does not have to pay national insurance contributions, which is the health tax. In those cases (and there a many) you can say they have "free" health cover. However, operating through a company normally means higher earnings so their contribution to the government through company taxes would be higher than a normal tax payer, even though they have a lower tax percentage.Ignored
Also, if it can be proved that the work you are doing through a limited company directly relates to the revenue the company makes then the tax man will frown on you paying yourself in dividends. You cannot work on a daily basis generating income and then pay yourself entirely in dividends - not if you want to remain within the law and avoid the attentions of the Inland Revenue anyway.