Optimal Salary Dividend Break

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

SallyPlanIT replied

13 December 2010, 12:34
Originally posted by Craig@InTouch View Post

£6,475 is the tax free amount but does create some NIC. £5,715 is both tax free and NIC free.

I would add to Craig's reply that if you take the lower salary and do not pay national insurance contributions (NICs) because they are not due; if you are in the UK state pension system, you WILL still receive the NICs credit for the year.
Leave a comment:
Craig@Clarity replied

12 December 2010, 18:56
£6,475 is the tax free amount but does create some NIC. £5,715 is both tax free and NIC free.
Leave a comment:
DeludedAussie started a topic Optimal Salary Dividend Break

12 December 2010, 18:52
Optimal Salary Dividend Break

WHat is the optimal way to pay salary and dividend - I understand that the first 6,475 is tax free and this rises by 1K soon.

Why do I hear people saying they pay themselves 5715?
Tags: None

Working...