With the new tax year underway it’s time to review your salary/dividend mix if you are the owner of your own company. This year my advice is to go for a basic salary of £670/month or £8,040 for the year. This will ensure you receive a full national insurance credit for the state pension but is just below the point that you start paying national insurance contributions.
The removal of the employment allowance for companies without employees, so for companies with only directors on the payroll, means that there is no longer any benefit in paying up the tax free threshold of £11,000. The additional national insurance you will end up paying at this level will outweigh the tax saving for the company.
Authorised & regulated by the association
of chartered certified accountants
2024 Peters Associates Accountants Brighton
