All UK business owners with an income above the current threshold will pay income tax. When drawing money or paying yourself in dividends, you’ll pay income tax after declaring your income on your Self Assessment. If you take a salary, your income tax will be automatically deducted from your regular pay through the PAYE scheme. There are situations in which you won’t have to pay tax on your income. This includes if a business owner's starting salary is less than the personal allowance.