Salary/Income?

[zedAccounts]

You can pay yourself an amt above the min salary such that total EE & ER NIC + Income Tax is about the same as the CT on the excess amt. This way your co looks like it's paying some NIC which you may (or may not) prefer.

ZED.

[Sausage Surprise]

We recommend £12,000 as it's in line with national minimum wage (NMW), although have a fair few clients who decide to take less or sometimes more.

I am aware that NMW doesn't apply to a Director unless they are employees or workers (and a director or secretary is not an employee for the purposes of the NMW unless he is engaged under the terms of an employment contract).

But, in some cases a directors' service contract could be construed to also be an employment contract unless it's drawn up correctly, and you may actually want them to be deemed to be an employee anyway if you want to claim Employment Rights such as SMP, SSP, Tax Credits, Universal Credit, Unfair dismissal etc. Some benefits are paid based on the number of hours worked in Employment. So you can’t claim certain benefits unless you’re an employee, and if you’re an employee then NMW applies.

The difference between £12,000 and £7,692 works out at about £1,000 extra in tax & NI overall, so it’s not a massive difference. That may well change next year for the better when the Employer’s NI changes come in too.

I know I'd rather have that in my back pocket than give it to HMRC.

[Bellona]

I know I'd rather have that in my back pocket than give it to HMRC.

+1 although unlikely to go in my back pocket - more likely to be seen as "additional income" and spent on frivolities