Minimum salary or director fee?

[vhadiant]

Hi,

Currently I'm paying myself a minimum wage, which equates to around £897 / month. Now I'm toying with the idea of paying myself a director fee rather than the salary and take the rest of the dividend. What's the implication for this? Tax will be lower (slightly) but is it worth it? Do you think this is a trigger of investigation by setting yourself such a low fee?

[chris79]

This is has been discussed previously, there is no evidence to suggest that paying a directors fee triggers an investigation. For the record I pay myself a directors fee and take the rest as a dividend... don't listen to scare mongers who post baseless theories. After all, you're doing nothing wrong, it's all within the law so why should you or I be worried?

[Archangel]

Minimum Wage

Directors are exempt from the minimum wage legislation.

[Archangel]

No wages

If you don't pay any national insurance it will affect your state pension come retirement.

(actually if you pay a salary > 0 but below the NI threshold this counts as well)