How much salary do you pay yourself?

[psychocandy]

My accountant has suggested £136 (which works out £7072 per year) which is the most you can pay with no deductions for tax or NI (employee or employer).

Sounds good to me. Is this what everyone does?

I know that if you're subsequently inside IR35 then its a problem anyway, but, assuming you're outside IR35, does paying yourself such a small salary and then relying on dividends not be seen as taking the p**s by HMRC? Or is it perfectly acceptable?

Also, am I right in saying that even though you're not paying NI, the assumed NI threshold is 5K or something so that as long as your paying yourself more than this, you're OK?

[pmeswani]

My accountant has suggested £136 (which works out £7072 per year) which is the most you can pay with no deductions for tax or NI (employee or employer).

Sounds good to me. Is this what everyone does?

I know that if you're subsequently inside IR35 then its a problem anyway, but, assuming you're outside IR35, does paying yourself such a small salary and then relying on dividends not be seen as taking the p**s by HMRC? Or is it perfectly acceptable?

Also, am I right in saying that even though you're not paying NI, the assumed NI threshold is 5K or something so that as long as your paying yourself more than this, you're OK?

I pay myself a bit more than £136 a week. i think it's about £590 a month. I don't mind paying a small amount towards NI just to keep things ticking over.

[northernladuk]

Simple search... lots of answers...

http://forums.contractoruk.com/searc...earchid=394598

[Clare@InTouch]

£589 a month is enough to qualify for NI (and therefore state pension) without actually resulting in any PAYE liability.

[ASB]

Simple search... lots of answers...

http://forums.contractoruk.com/searc...earchid=394598

Sadly pasting a link to the result of the search you have done to try and help the OP doesn't work.

[northernladuk]

Sadly pasting a link to the result of the search you have done to try and help the OP doesn't work.

Oh? Why not? There is some technical reason or they just won't read it? I know it only works if you are logged in (well it does for me anyway)

[DaveB]

Oh? Why not? There is some technical reason or they just won't read it? I know it only works if you are logged in (well it does for me anyway)

It doesnt save the terms of the search, just the ID for the search results page created. This times out after a while so you get a blank page come back when you click on that link.

[TykeMerc]

£589 a month is enough to qualify for NI (and therefore state pension) without actually resulting in any PAYE liability.

To answer the OP, that's what I pay myself as a salary.

[SimonMac]

I pay myself about £750 a month, make sure I pay a little bit of everything (NI, ENI, Tax etc) not sure if there is any logical reason in doing this but it makes me feel better knowing I am paying something of each

[singhr]

In matters such as this, I always ask myself 'What would Sir Philip Green do?'