Paying Personal Allowance for the year

[alfatech]

If I pay myself the personal allowance for the year from my ltd co (which I think is around £6000), plus any expenses. Would that mean I pay no income tax or NI for the year?

At the moment I am paying myself NMW and I think the tax is too high on it. Any suggestions?

[Platypus]

As you said, pay yourself £6k (no tax or NO) then dividends

[pmeswani]

If I pay myself the personal allowance for the year from my ltd co (which I think is around £6000), plus any expenses. Would that mean I pay no income tax or NI for the year?

At the moment I am paying myself NMW and I think the tax is too high on it. Any suggestions?

From my understanding, you will still pay N.I. on any amount above the £4305 limit.... even if your tax code is over £6k

[ASB]

From my understanding, you will still pay N.I. on any amount above the £4305 limit.... even if your tax code is over £6k

NI rate currently runs from the primary threshold of £105 per week, so it's a little more generous than you thought. NI is payable on this irrespective of any tax allowances.

http://www.hmrc.gov.uk/rates/nic.htm

[pmeswani]

NI rate currently runs from the primary threshold of £105 per week, so it's a little more generous than you thought. NI is payable on this irrespective of any tax allowances.

http://www.hmrc.gov.uk/rates/nic.htm

And with a Pay of £121.25 per week (based on a £6k allowance over 52 weeks), my argument may still hold. :-)

[TheFaQQer]

I wish I could live on 6k a year.

[Xenophon]

I wish I could live on 6k a year.

I wish I could live on 6k a month.

[TheFaQQer]

I wish I could live on 6k a month.

Price of Pot Noodle going up in London?

Maybe they are in short supply or something.

[Manic]

I wish I could live on 6k a month.

[alfatech]

dont mind paying NI - how much will I end up paying over the year if I pay myself £6k a year? At what percentage is NI charged?

Also will I qualify for a state pension contribution year by paying myself this amount?