Salary when already over threshold

[psychocandy]

You might want to check that with your accountant. My understanding is that NI is calculated independantly for each employment. So your new company allows you to pay yourself a salary and use a new set of NI allowances. If I'm right (and I think I am) then you can pay yourself 7K from your company in this tax year and pay no NI. You'll have to pay income tax on it as you've used your personal allowance on your previous employment.

Sorry my mistake - your right.

But theres nothing to gain from paying as a salary as opposed to just paying dividends in this case.

[northernladuk]

Sorry my mistake - your right.

Man you started a two day thread trying sorting out your situation. How can you get it wrong again so soon??

http://forums.contractoruk.com/accou...ml#post1377408

[psychocandy]

Man you started a two day thread trying sorting out your situation. How can you get it wrong again so soon??

http://forums.contractoruk.com/accou...ml#post1377408

[escapeUK]

You might want to check that with your accountant. My understanding is that NI is calculated independantly for each employment.

Sounds highly unlikely to me, the vampire squid aka HMRC would not let people do 4 temporary jobs and get 4 lots of NI allowance.

Also, I was in this exact position a few years back and my Accountant advised taking no salary for the rest of the year and paying everything in dividends.