The most tax and NI efficient way to remunerate director shareholders is to pay an annual salary at the primary NI threshold ( this is currently £12,570 for the 2024-25 tax year), with additional remuneration taken as dividends. This ensures that the director qualifies for state benefits , including the State Pension, but does not have to pay any NICs. A directors liability to NI is calculated on an annual basis as opposed to other employees whose liability is based on each pay period ( either weekly or monthly). Contact us for more information.
Directors Remuneration
Published On - 9 June 2024