How much salary do you take from your Ltd?

[d000hg]

Was going to ask what current advice is these days, but finding out what everyone else might be more interesting... poll en route.

And since we're in a serious thread, I hope you won't mind missing the AndyW option.

[Olly]

you missed out "up to your personal tax allowance limit - £6750 (I think)"

P.S. you really honestly think Hector believes 11K is a fair salary for an IT professional? I can't for one second see how that would stand up to any scrutiny. But we've done all that before

[d000hg]

P.S. you really honestly think Hector believes 11K is a fair salary for an IT professional? I can't for one second see how that would stand up to any scrutiny. But we've done all that before

I find it a bit of a feeble tactic, but my accountant (Quay/Clearsky) recommend this. £11k gross salary, £1k income tax, NI, etc.

[Olly]

They recommended it to me and I said naaaaaah...that's a feeble tactic

[d000hg]

So the £6750ish number takes you up to the limit of income you can bring in with zero tax, right? What are the personal/business NI contributions at that level?

[Olly]

1.Yes.

2.Less than 21% corp tax..just!

bugger that reminds me..I need to pay the NI....hope I can remember all the passwords and logins

[FiveTimes]

6k I think the payroll is set to - I'll know better tomorrow when the accountant emails me with the March payroll figure

[malvolio]

Two main schools of thought here. One says pay no more than you need to meet your personal allowance. The other says NMW, which is roughly £750 a month net. Costs a small amount of extra tax but "demonstrates good faith" according to some accountants. Also it is always possible other status rules will link to NMW.

Or you can pay yourself the going rate, or nothing at all. There is no oblilgation to do anything, it's why you're a director...

[Olly]

I've always wondered, if you get stung by IR35 but are paying yourself the going permy rate for the job, say 35 or 40K although invoicing for more, than surely the rest is/should be left alone by Hector as Ltd profit?

Good faith - paying an extra 2250 when you might be invoicing 60K, 100 or more per year and the going perm rate for the role is probably more like 40K or something.... hmmm

We've never had any evidence on here that it would make a shred of difference have we?

Mind you we've not had many people tell their story when they got turned over by Hector at all.

[Weltchy]

you missed out "up to your personal tax allowance limit - £6750 (I think)"

P.S. you really honestly think Hector believes 11K is a fair salary for an IT professional? I can't for one second see how that would stand up to any scrutiny. But we've done all that before

Quite a few IT Jobs probably get paid around NMW. Helpdesk. Low level technicians. Indian Subcontractors. Probably the majority of staff at PC World.