How to pay yourself the director minimum salary and get £2,000 in your bank account

Author: Russell Smith
May 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.

Here’s how…….

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.

 

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