Yes, that old chesnut,
It appears a nominal salary (say, £4615 per year) is usually paid to company directors to keep them in good with state pension (meeting the minimum NI requirements).
If I have no need to want a state pension, then it seems going the 100% dividend route is most tax-effective.
Is state pension the reason why most accounting companies recommend a small salary payment for the director? I don't buy into the theory that I should at least have some salary to lessen the likelihood of an IR35 audit.
Cheers
It appears a nominal salary (say, £4615 per year) is usually paid to company directors to keep them in good with state pension (meeting the minimum NI requirements).
If I have no need to want a state pension, then it seems going the 100% dividend route is most tax-effective.
Is state pension the reason why most accounting companies recommend a small salary payment for the director? I don't buy into the theory that I should at least have some salary to lessen the likelihood of an IR35 audit.
Cheers
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