Friday, September 23, 2011

Small Wage by directors and shareholders (owners of companies)

It would be ideal to take a wage at the personal allowance level and just below the National Insurance contribution level but at the rate of Nil, to keep you in the system for NI credits.
The national insurance (NI) payable by employees is at 0% up to £ 135.00 weekly wage.
I suggest Directors pay them selves a wage of £580.00 monthly which works out at 6959 which is lower than the P/A £7479 11/12 year.
So you pay no tax and cost nil to the employer and pay nil to the NI and are part of the NI system gaining unemployment,maternity/paternity, sick and top up on the pension payments on retirement.
the remaining draw of funds will be by dividend as director and shareholder, only if there is profit in the company, up to the £35,000 where the rate of Income tax is set at 40% and fraction is added to the self assessment tax calculation for the year to 05/04/2012

No comments:

Post a Comment