Salary / dividend split

[evilagent]

While I'm here.......

An accountant I spoke to suggested paying myself a low salary that DOESN'T attract NI and PAYE, then the remainder as dividends (after expenses).

I was always under the impression it is advisable to pay a nominal amount of NI and PAYE. Something to do with pension rights, or something.

Whats the consensus? Pay a salary that is below the tax/NI threshold or pay a small token amount of tax/NI?

[northernladuk]

You could try searching the forums. This has been discussed endlessly.

It is down to personal choice. Some accoutants say do it, some don't. There isn't a definitive answer either way really.

[Clare@InTouch]

You can pay a small salary that attracts no NI yet still gives you pension rights, £624 per month in the current year. That may restrict your rights to other salary based benefits though.

[Maslins]

What Clare said.

See here, the bit under personal allowance. £146/week broadly equates to £624/month.

[LisaContractorUmbrella]

Before drawing anything I would make sure that you are working outside IR35