Best salary for 2017/18

[genius]

Last year I paid myself 11k salary and NI was about £31 a month.

Accountant is telling me this year the same salary will be about £62 a month due to a change in NI rules.

I found an article here that says a lower salary means no NI at all.

Optimum Directors Salary and Dividends 2017/18 - JF Financial : Online Accountants

Advice please?

And northernlad, don't post in this thread unless you have something helpful to say, cheers.

[Louisa@AardvarkAccounting]

If you are the sole employee through your company, I'd recommend £8,164 per annum, then dividends thereafter.

If there are two employees through your company, I'd recommend one on a salary of £11,500 and the other on £8,170 per annum. As this way, you can take advantage of the Employment Allowance. Then take dividends thereafter.

However it does depend on your personal circumstances; future plans, any other personal income, etc.

The above is just general guidance.

[northernladuk]

What?

[SueEllen]

It's up to you what you take in salary.

However some accountants have an idea that if you take below the minimum tax allowance or the minimum wage you are more likely to be investigated.

In regards to the increased NI it's due to the employers NI allowance not being allowed for one director/employee limited companies.

Finally banning NLUK was silly as he would have found you links to answer all your queries. And yes get a new accountant who know what they are doing.

[SueEllen]

What?

It's cos you would say "Ask your accountant."

[genius]

Ok so I will do 8164 and this means pay zero national insurance every month? Will tell my accountant. I already paid one month at 11k rate for April so I guess I have to adjust the remaining 11 payments

[MrMarkyMark]

It's cos you would say "Ask your accountant."

Which would be valid as his accountant told him something and he didn't question it

Accountant is telling me this year the same salary will be about £62 a month due to a change in NI rules.

[northernladyuk]

Ok so I will do 8164 and this means pay zero national insurance every month? Will tell my accountant. I already paid one month at 11k rate for April so I guess I have to adjust the remaining 11 payments

That isn't the optimal salary.

[genius]

That isn't the optimal salary.

It is according to the link I posted

[northernladuk]

It's cos you would say "Ask your accountant."

Nah. He's already spoken to his accountant. That would be silly.