Directors Earnings
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Some clarification please. Directors of a limited company(aged 53 & 65) have been payrolled £476 per month(£5712pa)but don't actually receive this, with a view to this amount being exempt from NI and tax. They have asked whether this has been increased in the recent budget. The only info I can glean is that this figure is now £139 per week(£7228) but seems a big hike.
Could anybody please clarify? thank you.
Could anybody please clarify? thank you.
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Comments
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You are aware that directors are allowed a higher amount of income as wages before paying any NIC aren't you?
What payroll software are you using?
Thus far I have used Sage Payroll and Moneysoft.
By making them a director on payroll you allow them to be calculated by what is known as the "table A method". Essentially, directors can earn up to £500 per month as wages before incurring any tax or NIC - at least this is what we did at the practise I have just left.
Can anyone else clarify this?0 -
Directors pay ni cumulatively so they pay nothing until they go over £7225 and then they pay ni on all their earnings over this so essentially they will pay the same amount as everyone else over the year just in a different way.0
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Directors wages
Hi
With paying £7225 (£602.08) there will be a little employers NI to pay (£21.11). The highest salary with there being nothing to pay is I believe £7072 (£589.33/mth).
Hopefully others more experienced will correct me if I am wrong.0 -
0910 and 1011 was £476.25
2011-12 is £589. This is now the directors salary we are using for our clients and indeed what I get paid from my company!0 -
Directors Earnings
Thank you all for your replies. It is much appreciated.0 -
Thanks for your reply. Is is much appreciated.0
