National Insurance contributions - Directors

[Lewis]

Agreed .... but my theory is not flawed is it??

Will that mean only 1 SA ( for director ) to be filled .... or does Co Sec also need this to be done.

Having a company secretary is pretty much irrelevant with regards to salaries and dividends. You can pay your partner a salary for book keeping for example. If your partner doesn't work the most efficient payment is £5K each and a 50/50 dividend split. You don't need to split shares based on contribution to business or anything like that. You might however want to consider a higher salary (say £10K) which a lot of accountants recommend due to minimum wage (discussed to death search previous threads).

Being a company secretary doesn't require you to complete a Self Assesment Form but being paid lots of dividends does, so partner will almost certainly need to complete form (not sure of dividend threshold but it isn't very high).

[QwertyBerty]

The NI rate is the same. But directors don't pay until their pay reaches the threshold, whereas employees pay immediately on a pro-rata basis. e.g. If a director is paid £10K per year, a director won't start paying NI until about 6 months into the year, whereas an employee will pay on the first month.

OK but you get a choice of paying later or pay-as-you-go. I'm set up for the latter.

QB.

[Lewis]

OK but you get a choice of paying later or pay-as-you-go. I'm set up for the latter.

QB.

Do you get a choice? I don't know. I following the NI rules for a director not an employee. There are benefits to this and none for doing it the other way around.