Salary threshold with no PAYE/NI

[ASB]

If you are a director then the NIC is not payable until you reach a cumulative total of £7225, my accountant has suggested a salary of £7072 so that no employee or employer nic is paid.

Not sure how your payroll is calculated, my accountant does mine

As a director you don't have to do it that way. It's optional. If you do it on an annual payment period it does mean a sudden reduction in take home when the threshold is reached.

The pro-rata method makes for smoother paying (and a few more sums). Of course the point is moot really where salary is only around the threshold level. In any event the actual amount payable overall is the same.

Chapter and verse for the bored:

http://www.hmrc.gov.uk/nitables/ca44.pdf

[prozak]

If you are a director then the NIC is not payable until you reach a cumulative total of £7225, my accountant has suggested a salary of £7072 so that no employee or employer nic is paid.

Not sure how your payroll is calculated, my accountant does mine

yes thank you. started a thread and got answers there also.

I am going to adjust to the 7072 amount also... less hassle...

[Waldorf]

If you are a director then the NIC is not payable until you reach a cumulative total of £7225, my accountant has suggested a salary of £7072 so that no employee or employer nic is paid.

Not sure how your payroll is calculated, my accountant does mine

[prozak]

You'll pay a small amount of Employer's NI on that though.

The limit to pay no PAYE at all is lower at £7,072.

hmmm... paying myself 600 a month you should pay 1.47 a month Employers NI.

Payroo shows zero for some reason....

[northernladuk]

Why would I want to listen to bad news?

Because it directly affects not only your personal income and the your business affairs, remember, the business you are a director of now and have responsibilities.

I wouldn't call a raise of 5p a mile on mileage bad news amonst other things.

[NorthWestPerm2Contr]

It's not, you just have to pay above the lower earnings limit of £102 per week - £5,304.

National insurance ? contributions and benefits

I thought he was referring to the fact we would all be dead by the time our pensions from the goverment kicked in.

[Clare@InTouch]

I didn't think that was applicable anymore...

It's not, you just have to pay above the lower earnings limit of £102 per week - £5,304.

National insurance ? contributions and benefits

[MrRobin]

Bear in mind you want to pay some NI (i.e. £1) to make sure your pension subs are still paid.

I didn't think that was applicable anymore...

[Sockpuppet]

I have just gone onto:

The Salary Calculator - Take-Home tax calculator

The salary we can now take home without paying NI or declaring PAYE seems to have jumped up from 5615 to 7225

Is that right?

If so then cool

Bear in mind you want to pay some NI (i.e. £1) to make sure your pension subs are still paid.

[NorthWestPerm2Contr]

Did you not listen to the budget then?

Why would I want to listen to bad news?

[malvolio]

I have just gone onto:

The Salary Calculator - Take-Home tax calculator

The salary we can now take home without paying NI or declaring PAYE seems to have jumped up from 5615 to 7225

Is that right?

If so then cool

Did you not listen to the budget then?

[NorthWestPerm2Contr]

You'll pay a small amount of Employer's NI on that though.

The limit to pay no PAYE at all is lower at £7,072.

Thanks for that. I think I will take my first salary of tha tax year just now.

[Clare@InTouch]

You'll pay a small amount of Employer's NI on that though.

The limit to pay no PAYE at all is lower at £7,072.

[NorthWestPerm2Contr]

I have just gone onto:

The Salary Calculator - Take-Home tax calculator

The salary we can now take home without paying NI or declaring PAYE seems to have jumped up from 5615 to 7225

Is that right?

If so then cool