bigfoot, the greatest advantage of dividends is actually up to the 40% threshold. Take minimum salary to ensure NI is credited whilst minimising your contributions and then take dividends above this, which no tax is actually paid on, up to the 40% threshold. The company of course has to pay corporation tax on the dividends as they are profit. This assumes the company is profitable enough to pay the dividends or that they are coming from reserves.
Above the 40% threshold the tax to pay is 32% (unless it's changed recently) and no NI on dividends from individual or company.
The total tax paid is generally the same whether salary or dividend route, the difference is whether the employee or employer pays it. IE PAYE (20%/40%) plus NI or PAYE (32%) and corporation tax.
BB