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NI and thresholds etc

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    NI and thresholds etc

    OK, so the PT is £672 a month. Anything over this you pay NI at 12%?

    So if you earn, £100 one month you'll pay zero, but £1200 next month means you'll pay (12% of £1200-£672) £63.36?

    Alternatively, if you earn £650 each month you'll pay zero because you're below each month?

    Seems a bit of an unfair way to do it. If an employer screws up your overtime and forgets to pay one month and pays it all the next it could cost you more the next? (But I guess only if you'd have been below £672 one month?)

    But I digress. Am I right that its different if you're a director? How does it work differently? I know I pay £10K a year, but only pay NI for the last few months of the year.
    Rhyddid i lofnod psychocandy!!!!

    #2
    As a director you get the annual allowance up front against your income and only start paying NI once your income exceeds the allowance.

    This is why if paying the personal allowance as a salary NI only kicks in a round January.

    Comment


      #3
      Would that be about the time you exceed the threshold?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Interesting and pretty clear (dunno about accurate) guide on the figures for next year including new divi tax here...

        Best Directors Salary and Dividend Levels 2016/17 - JF Financial : Accountants
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by northernladuk View Post
          Interesting and pretty clear (dunno about accurate) guide on the figures for next year including new divi tax here...

          Best Directors Salary and Dividend Levels 2016/17 - JF Financial : Accountants
          That was really useful thanks NLUK, even PC should be able to follow the options laid out in that article.
          In Scooter we trust

          Comment


            #6
            Originally posted by The Spartan View Post
            That was really useful thanks NLUK, even PC should be able to follow the options laid out in that article.
            Hey spartie butti !!!! I just follow what my accountant recommends!
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #7
              Originally posted by psychocandy View Post
              Hey spartie butti !!!! I just follow what my accountant recommends!
              So why not ask them this then?
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by northernladuk View Post
                Interesting and pretty clear (dunno about accurate) guide on the figures for next year including new divi tax here...

                Best Directors Salary and Dividend Levels 2016/17 - JF Financial : Accountants
                Nice on NLUK. Useful post for once :-)

                One thing which I may have got wrong in my head. The first £5K. I assumed this was taxed as normal? i.e. as we do now. And only anything ABOVE £5K accrued the extra 7.5% on top.

                But this bit in that article:-

                A new dividend allowance has been introduced which means that an individuals first £5,000 of dividends are tax free.

                seems to indicate its zero on this first £5000? Thats not right is it? If that was the case you'd 'save £1000 on that first £5000 and not be "down" until you paid out £13333 dividend.
                Rhyddid i lofnod psychocandy!!!!

                Comment


                  #9
                  Originally posted by psychocandy View Post
                  Hey spartie butti !!!! I just follow what my accountant recommends!
                  so you're a sheep then? You are allowed to ask questions, especially when you're paying for their expert advice.

                  Or is it you're just looking to get a rise out of NLUK?
                  In Scooter we trust

                  Comment


                    #10
                    Originally posted by psychocandy View Post
                    Nice on NLUK. Useful post for once :-)

                    One thing which I may have got wrong in my head. The first £5K. I assumed this was taxed as normal? i.e. as we do now. And only anything ABOVE £5K accrued the extra 7.5% on top.

                    But this bit in that article:-

                    A new dividend allowance has been introduced which means that an individuals first £5,000 of dividends are tax free.

                    seems to indicate its zero on this first £5000? Thats not right is it? If that was the case you'd 'save £1000 on that first £5000 and not be "down" until you paid out £13333 dividend.
                    The first 5k doesn't attract the dividend tax so it's:

                    11K Personal Allowance

                    5k divi's @ 0%

                    27k divi's @ 7.5% = £2025 tax payable to HMRC

                    Total £43k
                    In Scooter we trust

                    Comment

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