How much salay do you pay yourself

**dx4100** · 3 April 2009, 15:10

Originally posted by Andy2 View Post

Apparently minimum wage salary for this tax years is £11250 with a tax bill of whopping £2270 . Is it worth it ?
How many of you pay yourself minimum wage ?

If you have IR35 insurance it tends to say you have to pay yourself NMW otherwise you will have to pay an excess of about £3000 on any claim...

Otherwise you might as well just pay yourself the bare minimum...I would imagine anyway...

**FarmerPalmer** · 3 April 2009, 15:47

what about an option for "> minimum wage" ?

**VectraMan** · 3 April 2009, 16:23

Minimum wage following advice from my accountant. But I always wonder about not paying any salary. You'd pay more tax, but you'd save the hassle of PAYE and surely earning only dividends helps your "I'm a real business defence". Well maybe.

**Solidec** · 3 April 2009, 16:59

only ever paid a directors salary circa Lower Earnings Threshold for NI, so about £5200 a year.

Don't see the point in paying more tax than is LEGALLY required!

**Grinder** · 3 April 2009, 20:21

Originally posted by Solidec View Post

only ever paid a directors salary circa Lower Earnings Threshold for NI, so about £5200 a year.

Don't see the point in paying more tax than is LEGALLY required!

WHS

Minimum wage of £11250 unnecessarily implies you work a full working day - since you are not accountable for your hours why spell it out.

**pmeswani** · 3 April 2009, 21:05

Originally posted by Solidec View Post

only ever paid a directors salary circa Lower Earnings Threshold for NI, so about £5200 a year.

Don't see the point in paying more tax than is LEGALLY required!

I paid myself a lot less than that. lol.

**Andy2** · 4 April 2009, 11:16

Originally posted by Solidec View Post

only ever paid a directors salary circa Lower Earnings Threshold for NI, so about £5200 a year.

Don't see the point in paying more tax than is LEGALLY required!

My accountant suggested to pay minimum wages when i started the company 4 years ago since then I have been paying all this tax unnecessarily.

Will it raise any objection from hectar if I lower my salary to £5000 now.

**Fred Bloggs** · 4 April 2009, 12:27

Originally posted by Andy2 View Post

My accountant suggested to pay minimum wages when i started the company 4 years ago since then I have been paying all this tax unnecessarily.

Will it raise any objection from hectar if I lower my salary to £5000 now.

A bit like running a flag up a flag pole, huh?

**ASB** · 4 April 2009, 12:32

Originally posted by pmeswani View Post

I paid myself a lot less than that. lol.

I can't see any reason to do that unless you have salary from elsewhere that uses your allowances. Surely the minor hassle of filling in a few forms once a year is worth 1200 quid?

minimum wage £11250	62.16%	23 votes
approx £5000	37.84%	14 votes

How much salay do you pay yourself