Holidays

[ratewhore]

You work for your Limited 12 months a year. You may not bill a client 12 months a year but that doesn't mean your Limited doesn't pay you.

This is what running a business is all about, turnover, cashflow, profit, salary, dividends etc...

[Solidec]

Hi,

Just wondering if most people pay themselves during holidays? i.e. I was off for more than a month last December. Could save on a little bit of NI?

cheers!

I dont bpay above the UEL so dont incure any of that nonsense taxy bollox. That's for amateurs and scaredy cats

Accountants actually worked out £502.91 a month is the ideal directors salary as the NI ist no more expensive than the corporation tax anyway so may as well take the full personal allowance.

[zoro]

I pay myself about £1000 a month and the rest in dividends. If I don't pay myself for 1 month, I would still be paying the same £1000 the following month. Why would I be paying myself £2000 the next month?

I'll probably just pay as usual then. Not a big deal really. But just wondering what most people do

[Sockpuppet]

Hi,

Just wondering if most people pay themselves during holidays? i.e. I was off for more than a month last December. Could save on a little bit of NI?

cheers!

As Directors salarys paye/ni are calculated on a cumulative not week on week basis then the only way to save on NI is to pay yourself less over the whole year.

If you usually pay yourself £500 a month then pay yourself nothing for a month then £1000 the next you'll save no ni or paye.

[pmeswani]

Hi,

Just wondering if most people pay themselves during holidays? i.e. I was off for more than a month last December. Could save on a little bit of NI?

cheers!

Unless you are IR35 caught... why are you paying yourself a salary that incurs NI? I take about £450 a month PAYE and the rest in dividends, therefore paying nowt in NI or Income Tax. Any tax I pay is via my dividends. And yes, I still pay myself if I am on holiday or on the bench, assuming that my business can afford to pay me.

[zoro]

Hi,

Just wondering if most people pay themselves during holidays? i.e. I was off for more than a month last December. Could save on a little bit of NI?

cheers!