Directors Salary this tax year.

[eek]

I have always paid myself £1k a month and always had a small NI bill towards the end of the tax year. With this year's change in rates, that NI bill has started earlier.

Unlike some, I have no issue paying taxes as that MRI I had on my head last week cost way more than what I've paid towards it...

Interesting that, as a business owner, you don't keep abreast of such changes and understand the impact they will have...

Got to say - the only thing this year's change in rates did was make me ensure Mrs Eek is receiving £501 a month from the business.

[Protagoras]

I knew the rates had changed, did not realize the threshold had too.

Surprised you missed that - there was plenty of discussion on here about the employer NI changes and their negative outcomes!

[malvolio]

I knew the rates had changed, did not realize the threshold had too. The problem I have is that when I am busy with software engineering work, I find it hard to keep abreast of so many other things, let alone understand them and their impacts; I am pretty monotropic at times. Currently between contracts though, so I get time to catch up on all this and sort all my admin out.

Somebody else running without a proactive accountant? I don't trouble ours much these days, but they do flag up all the significant things we may have missed...

[willendure]

Interesting that, as a business owner, you don't keep abreast of such changes and understand the impact they will have...

I knew the rates had changed, did not realize the threshold had too. The problem I have is that when I am busy with software engineering work, I find it hard to keep abreast of so many other things, let alone understand them and their impacts; I am pretty monotropic at times. Currently between contracts though, so I get time to catch up on all this and sort all my admin out.

[ladymuck]

I have always paid myself £1k a month and always had a small NI bill towards the end of the tax year. With this year's change in rates, that NI bill has started earlier.

Unlike some, I have no issue paying taxes as that MRI I had on my head last week cost way more than what I've paid towards it...

Interesting that, as a business owner, you don't keep abreast of such changes and understand the impact they will have...

[jamesbrown]

Depends. For the simple case of a company with one director, no EL, it will most likely be the PT of £12,570 as the ErNI is offset by the CT saving. However, I wouldn't overthink this, it's really not that important. If you don't want the "hassle" of paying NI, then go with the ST.

[willendure]

For quite some time I have taken a directors salary of £750/month an paid zero NI.

Just got a letter from HMRC saying I owe them £252.62 in NI. Which took me by surprise. But then I checked the NI rates here: https://www.gov.uk/government/public...-contributions

Lower Earnings Limit (LEL) Employees do not pay National Insurance but get the benefits of paying	£542	£533	£533	£533	£533
Primary Threshold (PT) Employees start paying National Insurance	£1,048	£1,048	£1,048	£1,048	£823
Secondary Threshold (ST) Employers start paying National Insurance	£417	£758	£758	£758	£758

I did not realize the employers threshold had dropped to £417. So fair enough, I guess I do owe them £250.

What do you do for directors salary this year? £750 was not the absolute most efficient, but at least it was a no brainer until this year.