With the end of the 2013/14 Tax Year looming we have been giving some thought as to the optimum level of Director's Remuneration for next year. For this current Tax Year many advisers have suggested using £633 or perhaps £650 per month. This was mainly to minimise any Employer's (13.8%) and Employee's NIC (12%).
However with the introduction of the Employer's Allowance (Employer's NIC Holiday up to £2,000), Director's Remuneration of £833.33 would appear to be the optimum amount. Such an amount would obtain Corporation Tax Relief (20%) with PAYE Tax (0%), Employee's NIC (12% over £7,956 (£153 pw)) but no Employer's NIC.
Has anybody any thoughts / comments?