Yes, I'm sure it works out more favourably overall though in my case I don't think paying my wife a salary would help as she already has an income and even as a part-time nurse she now finds herself in the top tax bracket. If her only salary was coming from my business then maybe it would be...
Apparently not, according to my accountant. My company is "tax efficient" in his words, and there's no benefit to taking one approach rather than the other, which I guess is why the system has been equalised.
Well that was the way most of us who run small limited companies have operated from day one but now that we're taxed on those dividends there's not much difference. My personal tax bill (if you include my wife's share) is now almost as big as my corporation tax bill.