Living Wage

[pjt]

My accountant has suggested I should increase my salary to £13,104 to take into account the living wage changes. Has anyone else been recommended to do this? My understanding was always that as I Director this was not something I had to worry about, as the minimum wage rules etc did not apply.

[Kenny@MyAccountantFriend]

No I would not be recommending this.
As a director you are not subject to the minimum wage regulations.

[Alan @ BroomeAffinity]

My accountant has suggested I should increase my salary to £13,104 to take into account the living wage changes. Has anyone else been recommended to do this? My understanding was always that as I Director this was not something I had to worry about, as the minimum wage rules etc did not apply.

Shocking advice and IMO betrays a lack f knowledge in general.

Genuine question: will this mean you'll change accountants?

[pjt]

OK guys thanks for the quick update. I'll bring it up when I next see him

[Alan @ BroomeAffinity]

Do you really think you should be speaking to him again other than to say you're moving on? What else do you not know he doesn't know?

[stek]

Is that what Accountants are like when they are circling for a kill?

[northernladuk]

OK guys thanks for the quick update. I'll bring it up when I next see him

See him? Is this a local bod and not one of the bigger contractor specialists?

[Alan @ BroomeAffinity]

@stek: it amazes me what sh!t clients (not mine obvs) will put up with from their accountants. You wouldn't employ a brickie if he had to ask on a forum how to mix up mortar.

[WordIsBond]

Is that what Accountants are like when they are circling for a kill?

LOL.

Whenever I read about an accountant giving advice that doesn't make any sense, I always wonder what is the rest of the story. And if I'm going to be bothered to comment on it, I try to think of the scenario that would make the accountant's advice make sense. Outside income? Foreign income? Something to do with spouse?

I can think of ONE case that might make sense. If OP also is self-employed doing something else, and has self-employment losses to set off against the income, AND is employing a spouse so he gets to use Employment Allowance, then MAYBE this would make sense. But since the reason given was the Living Wage, I conclude that OP's accountant is probably an idiot. I'm with Alan. I'd be disengaging as soon as....

[d000hg]

My accountant listed 3 or 4 options, one being NMW for those who wished to go that route but it wasn't advised.