Salary amount

[mudskipper]

I started with 12K and my accountant recommended going to £8,100 saying that it made no difference to IR35.

THink I'm somewhere in the middle. 9.5ish IIRC

[SandyD]

I started with 12K and my accountant recommended going to £8,100 saying that it made no difference to IR35.

(I have more than £8,100 btw.)

Thanks helpful reply

[Alan @ BroomeAffinity]

I'm an accountant and advocate the minimal amount as do many others. I know that a couple of the bigger firms go for the NMW route or £12k pa route. I can't see the statistical theory holding any water tbh. I have circa 300 clients, virtually all of whom are paid up to the NIC threshold. We've had 1 investigation in 5 years. That's a 1 in 1500 chance, not 1 in 7. And, if I remember correctly, the salary level was never mentioned.

[Chods]

Basically its stats, if you are paying the minimum your chances of being investigates is 1 in 7 if you are paying above, the chances are 1 in 20 - or so am told... its up to me at the end, that was just an advise, I just wondered what the majority here thinks? Also if any accountants around to shed some light?

I agree with Northernlad on this. Thats rubbish. Those odds are way out. And i seriously doubt that an extra few hundred pound in tax would make a difference to whether your investigated.

However it is always worth paying some NI otherwise the year wont count towards your pension contributuions. Not that it amounts to much these days anyway, but better than a poke in the eye

[BolshieBastard]

In the past I had the minimum salary £8,100 but new accountant recommending going up to 12 K to avoid IR35 investigation

I'd love to hear the justification for that.

Me too!

Not quite the same reason, no IR35 anyway but a "pointer" HMRC use for random investigations. At the end of the day an investigation would give the accountant a headache so if you and them can avoid one....well why not?

GE

So you think paying 12k instead of 8k on a turnover of around 70k (or more) is less likely to make hmrc consider IR35!?

Dream on.

[Contreras]

I wonder how many get the minimum salary £8,100 p.a from their Ltd and how many go above e.g. around £12K per anum?

Technically the minimum salary you can pay is £0.

Although often what's meant by "minimum salary" is the maximum annual salary that will get your NI stamp without incurring any actual NI liability, i.e £7488.

Actually, the minimum salary you can pay and still get your NI stamp is £5564.

There is also the "minimum" of £7605 which does incur some NI, but let's not go there today.

By paying £8100, you and YourCo are already liable for £144 NI that wouldn't otherwise be due if you had paid the "minimum" (£7488).

Any amount over £8105 (or if you have other income) and you will incur income tax.

Most accountants will advise the £7488 (depending on circumstances) but you don't have a poll option for that.

HTH.

[SandyD]

Technically the minimum salary you can pay is £0.

Although often what's meant by "minimum salary" is the maximum annual salary that will get your NI stamp without incurring any actual NI liability, i.e £7488.

Actually, the minimum salary you can pay and still get your NI stamp is £5564.

There is also the "minimum" of £7605 which does incur some NI, but let's not go there today.

By paying £8100, you and YourCo are already liable for £144 NI that wouldn't otherwise be due if you had paid the "minimum" (£7488).

Any amount over £8105 (or if you have other income) and you will incur income tax.

Most accountants will advise the £7488 (depending on circumstances) but you don't have a poll option for that.

HTH.

Thank you, I thought the threshold has increased to a £8100, so obviously am wrong. Thanks for letting me know, but true I am told I'd have a liability on that amount but its not much.

Thanks again.

[deanosity]

I pay myself a salary of £7448 a year.

[Higgs Boson]

I get £7488 per annum as apparently, it means I dont pay tax/ni but I do get a full years state pension credit.

I hope.

[TheFaQQer]

I pay myself a salary of £7448 a year.

Me too.

Of course, the limited voting options mean that you can't express this in the results.