Next years salary?

[Unix]

So with the new changes announced in the summer 2015 budget, what should Directors pay themselves as a salary if they want to minimise income tax, NICS etc. I am paying myself £8052 this year which attracts no tax.

[jamesbrown]

So with the new changes announced in the summer 2015 budget, what should Directors pay themselves as a salary if they want to minimise income tax, NICS etc. I am paying myself £8052 this year which attracts no tax.

TBH, I think it's a little early to tell at this level of detail, as it will depend on the implementation of the Employment Allowance w/r to your set-up, among other things. However, the salary you're paying this year probably isn't optimal (assuming YourCo is eligible for the Employment Allowance).

[DaveB]

At this point I think we need to wait for this to be raked over by the professionals to give some better advice than the back of a fag packet calcs that have been thrown up so far.

It's going to take a couple of weeks for the details to come out and be accounted for.

Saying that, all the Accountants posting so far have assumed taking the full personal allowance and using the NI relief.

[PerfectStorm]

So with the new changes announced in the summer 2015 budget, what should Directors pay themselves as a salary if they want to minimise income tax, NICS etc. I am paying myself £8052 this year which attracts no tax.

Sounds like you need to chat to your accountant about the current tax year, let alone the next one

[TheCyclingProgrammer]

If dividends are no longer covered by the normal personal allowance and all you get is the £5k then it seems likely that the only salary that makes sense is the full personal allowance, whether you qualify for the employers NI allowance or not (assuming you have no other income).

[northernladuk]

Isn't it a bit early to be getting worried about next year? Is there enough information around for accountants to make that call yet? I'll be quite happy to give my accountants time to digest and distribute the information. It affects all of us so I am sure there will be plenty of info flying about when it's fully understood.

[Jessica@WhiteFieldTax]

Isn't it a bit early to be getting worried about next year? Is there enough information around for accountants to make that call yet? I'll be quite happy to give my accountants time to digest and distribute the information. It affects all of us so I am sure there will be plenty of info flying about when it's fully understood.

Yes - and remember if you got 5 contractors and their accountants in the room, 10 people in total, you'd probably get 18 opinions. Worse than economists.

[Unix]

Is it too hard to do one with employer allowance and without?

[d000hg]

Is it too hard to do one with employer allowance and without?

I don't know, is it?

[Unix]

I don't know, is it?

I am not an accountant, hence the question on the accounting board. I'll wait until our esteemed accountants get up to speed.