Tax efficient salary for 2015/16

[TheCyclingProgrammer]

May I suggest those with additional needs save a copy and add extra lines themselves? Or I'll be here all day.

As s general rule, I think if most of your personal allowance is used up by other earnings/income then you probably want to reduce your salary, perhaps to zero, bearing in mind things like having enought qualifying NIC years.

But IANAA, ask yours.

[northernladuk]

Terrific document.. Many thanks for creating and sharing...

[TheFaQQer]

May I suggest those with additional needs save a copy and add extra lines themselves? Or I'll be here all day.

Typical bloody contractor - delivers something they think works, and when the clients ask for new features you tell them to do it themselves...

[TheFaQQer]

Off topic, but on Only Connect this week, they said that the threshold was £10500 not £10600, which meant that when we were playing along at home I didn't get the full five points that the first question would have given me.

The programme was, obviously, filmed prior to the budget.

[TheCyclingProgrammer]

Terrific document.. Many thanks for creating and sharing...

I always knew those GCSE spreadsheet skills would come in useful one day.

[TheCyclingProgrammer]

Off topic, but on Only Connect this week, they said that the threshold was £10500 not £10600, which meant that when we were playing along at home I didn't get the full five points that the first question would have given me.

The programme was, obviously, filmed prior to the budget.

Funnily enough, I noticed the same thing whilst updating it (one of the few on OC I got right that night!).

[TheFaQQer]

Funnily enough, I noticed the same thing whilst updating it (one of the few on OC I got right that night!).

I was mortified - I'd just been through your spreadsheet so I confidently predicted the answer for 5 points, and then got it wrong

[arby]

May I suggest those with additional needs save a copy and add extra lines themselves? Or I'll be here all day.

Fair enough - done!

[Forbes Young]

Good spreadsheet - but from 6/4/15, a contractor operating through his own ltd company who is not a higher rate taxpayer is overall better off taking £671 pm salary (£8052 pa) and can take up to £30,900 net dividends tax free. This way, no NI, PAYE or income tax (on dividend income) is payable. Taking this amount of salary safeguards the entitlement to state benefits even though you don't pay any NI contribution.

Graeme Bennett ACMA MBA

[jamesbrown]

Good spreadsheet - but from 6/4/15, a contractor operating through his own ltd company who is not a higher rate taxpayer is overall better off taking £671 pm salary (£8052 pa) and can take up to £30,900 net dividends tax free. This way, no NI, PAYE or income tax (on dividend income) is payable. Taking this amount of salary safeguards the entitlement to state benefits even though you don't pay any NI contribution.

Graeme Bennett ACMA MBA

The 2k Employment Allowance needs to be factored into this.