Hi all
I'm a Ltd company, single shareholder, no other earnings.
My accountant has recommended a salary level of £13k, to meet with national minimum wage requirements. I've pointed out that NMW doesn't apply to directors, and I don't generally work 40hours per week in any case. They've then said that they recommend £13k as it's advised to pay minimum tax and NI to HMRC. If I take £10K I will still pay some tax but no NIC (due to the employment allowance).
Is anyone else advising increasing the salary to keep some NIC payments? I believe that it's advisable to ensure a credit for NIC purposes (to help in terms of future state pension and other benefits) but I'm not sure with the employment allowance whether those credits will occur if my company is reducing its NIC contributions due to the allowance.
Any help / advice welcome!
Thanks
Paul
I'm a Ltd company, single shareholder, no other earnings.
My accountant has recommended a salary level of £13k, to meet with national minimum wage requirements. I've pointed out that NMW doesn't apply to directors, and I don't generally work 40hours per week in any case. They've then said that they recommend £13k as it's advised to pay minimum tax and NI to HMRC. If I take £10K I will still pay some tax but no NIC (due to the employment allowance).
Is anyone else advising increasing the salary to keep some NIC payments? I believe that it's advisable to ensure a credit for NIC purposes (to help in terms of future state pension and other benefits) but I'm not sure with the employment allowance whether those credits will occur if my company is reducing its NIC contributions due to the allowance.
Any help / advice welcome!
Thanks
Paul
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