2014 Salary - £10K it is

[psychocandy]

A very good point seeing as some contractors like myself, take two months off per year.

Must be minted mate!

I've had more than 2 months this year but not out of choice!

[The Spartan]

Must be minted mate!

I've had more than 2 months this year but not out of choice!

It's all about planning buddy, I don't live to work the whole reason I became a contractor was the flexibility that and the fact I can't work under people

[Contreras]

It's an RTI filing requirement for Universal Credits ...

Is it? I managed to submit RTI without specifying any hours worked.

The submission report says "HoursWorked D" which I assume means 'Director'.

If I had to say hours worked it would need to include time spent on Sales: job boards and speaking to agents/clients; Administration: bookkeeping, VAT returns & chasing invoices; R&D: dreaming up Plan B and posting on CUK.

[Clare@InTouch]

Is it? I managed to submit RTI without specifying any hours worked.

The submission report says "HoursWorked D" which I assume means 'Director'.

If I had to say hours worked it would need to include time spent on Sales: job boards and speaking to agents/clients; Administration: bookkeeping, VAT returns & chasing invoices; R&D: dreaming up Plan B and posting on CUK.

It is - here you go: https://www.gov.uk/government/upload...-employers.pdf

Universal Credit payments are linked to how much money an employed Universal Credit
claimant has earned. This is captured through the new way of reporting PAYE information to
Her Majesty’s Revenue and Customs (HMRC) in real time. You may have seen this referred to
as Real Time Information or RTI.

[Smartie]

Crunch says...

My accounting software (Crunch) is forcing me to take £663 per month (£7956 annually) for the new financial year payroll however it seems to be the consensus that £10k is optimum. I queried this as follows:

"Hi,
The system is asking me to set up a new payroll run for 2014 with a fixed salary amount of £663 per month. I queried in January and again more recently, whether this is the most efficient salary to take given new tax rules (on NI). My understanding is that the consensus is that a salary of £10k is the most efficient. Could you please let me know at your earliest convenience if this is indeed the case and if Crunch supports this?"

And the reply:

"Thank you for your email.
We advise taking up to the NI threshold which is £7956.00 per annum, or £663.00 per month for the new tax year.
The £10,000 you are referring to is the PAYE income tax threshold.

Warm regards

Emma Prendergast
Account Manager
Crunch"

Thoughts?

[Martin at NixonWilliams]

Your question hasn't really been answered, I would ask again and make it clear why you are asking.

Note that if you are not eligible for the £2,000 NI incentive then £7,956 is likely to be better for you but this is only really for those working in or for the public sector - see the following link for more details:

https://www.gov.uk/government/upload...A_Guidance.pdf

[Smartie]

I asked about it in January, with specific details (and a link to the topic on these forums) and was told that it wasn't decided yet. I've also asked more recently with no response. It's very possible that the software simply can't support a director's salary different to the 'recommended' amount but it would be nice to be told.

[DirtyDog]

My accounting software (Crunch) is forcing me to take £663 per month (£7956 annually) for the new financial year payroll however it seems to be the consensus that £10k is optimum.

If your accountant is dictating your salary level, then you may want to read up on the MSC legislation.

[cojak]

Dave's letter causing confusion

My accountant has just had to send out a message saying that despite what it says in Dave's letter, there is NO £2k cashback, just the allowance...

[Craig at Nixon Williams]

My accountant has just had to send out a message saying that despite what it says in Dave's letter, there is NO £2k cashback, just the allowance...

He could have just sent a flyer to every employer saying ‘Vote Conservative’ – it would got to the point much quicker and caused less confusion.