Hello and welcome to the site. Thank you for your question.
Paying a salary
You should be aware of associated costs i.e employee and employer's national insurance.
You have to enrol for PAYE scheme and salary is taxed under PAYE.
Make use of personal allowance (tax year 2015-16 £10,600)
Salary is a tax allowable expense in company's accounts ... less corporation tax to pay.
You would not pay any income tax on the dividends provided your taxable income remains within the basic rate threshold (for tax year 2015-16 the figure is £31,785)
Dividends are distribution of taxed profits and no saving as far as company goes.
Combination of two
My clients take a salary and dividend but the salary is at or below personal allowance level and top it up with dividends on a needs basis bearing in mind tax implications of dividends if your taxable income puts you into higher rate tax band.
More information on how dividends are taxed can be found here
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.