Advice on setting salary level

[northernladuk]

Truth be known, I am still a little unsure around all of this now.

You ain't kidding there lol. I went back and had to check mine again after the umpteenth set of numbers appeared.

[WordIsBond]

Thank you for the advice. One additional question: given I've been on £14k for a few years and paying tax and NI, now moving to a £8k is a large reduction of salary, will this catch the tax people's attention and cause unnecessary troubles(e.g. they may decide to audit me because of this)?

NLUK answered this, but since you directed it to me, I agree with his answer.

My accountant has also recommended that my salary should be £11k and not £8k, on the basis of 2 lts director setup. Are they in effect wrong ? This has got me worried now

You got an answer from missinggreenfields which is generally correct. I'll add the following caveats:
1) Do you have any other non-interest/non-dividend income, or interest income above £1K? If so, that could affect whether £11K is the right number.
2) Look at what I said above about BIKs. That could potentially change the dynamic in some cases. Ask your accountant, in that case.

But in general, if you are eligible for Employment Allowance, £11K would be better than £8K.