Directors salary

Rachel

Hello

What is the most tax efficient salary for a director to pay themselves before dividends? They are the only employee. It is a computer consultant expecting to turnover £100k

I have had conflicting advise so I thought I would ask on here.

Many Thanks

Rachel

Sorry question probably sounded think I didn't know anything about tax.

Dividends up to 32500 (09/10) at 10% obviously this is probably best to use up

Personal allowance £6500e needs to be utilised.

What I was asking for if there was a formula between estimated taxable profits and best salary to be most tax efficient. If someone could point me in the right direction I would really appreciate it.

Many Thanks

groundy

All our directors currently pay £480 per month gross. Doesn't use all the allowance but means you don't overpay NI. Ant additional remuneration is taken by way of dividend.

We review the Gross amount at the start of each new tax year.

Rachel

Thanks for your response.

Is there a calculator or formula that helps guestimate the best options?

groundy

My Brain.

Look at the NI Levels each year and set the salary so that a little amount of NI is paid.

Rachel

I have found this calculator which will get me there in a round about way but is there a better one out there?

http://www.contractorcalculator.co.uk/

monkeypuzzle47

yes i use that one too! hee
but if anyone uses another that would be useful.