How to pay yourself the director minimum salary and get £2,000 in your bank account
Author: Russell SmithMay 14, 2014
From 6 April 2014, if you are a business owner who employs people you can claim a £2,000 reduction on your Employers NI.
This applies to all companies except if you do the majority of your work for a public body e.g. a council.
You can claim this by ensuring that you tick the ’employment allowance’ box when you do your payroll.
This is the good news.
More good news….
As a limited company director, you can pay yourself a minimum director salary and get a reduction of £2,000 in corporation tax.
If you are a one person limited company, pay yourself £10,000 in salary.
If you do employ people AND will take out over £38k from your limited company (i.e. be a higher rate tax payer), pay yourself £7,956.
If you do employ people AND will take out less than £38k from your limited company (i.e. be a basic rate tax payer, pay yourself £10,000.