Director salary of £22,449

With the employers allowance coming in, I've seen discussions talking about whether to take £7,956 or £10,000 as a salary. But was thinking, for a one band incorporated company, what about a salary of £22,449?

Way I see it, it would make full use of the £2,000 allowance and would reduce the CT liability (assuming small company) by £4,490. There would be income tax of £2,490 and employees NI of £1,739 but this would be offset by the CT saving.

I know the usual would be to take dividends but as they arent tax deductible and if only one employee (the director) then overal between the individual and the company this to me sounds like the most tax efficient option.

What do fellow AWeb members think?

Comments
There are 13 comments. Login or register to view them.

The calculation you have done

rjoconnor81 |

Even cheaper to go with £10,000

Ken Howard |

Am I missing the point?

Euan MacLennan |
Euan MacLennan's picture

Whilst they would be paying

jaxx789 |

Euan, what of people in a

jaxx789 |

Forgetting personal tax

stepurhan |
stepurhan's picture

I can see the rationale

a_spriggs |

I calculated it on £22,499,

rjoconnor81 |

Sausages...

Steve Kesby |
Steve Kesby's picture

Where does this belief that

Triggle |

Some confusion

stepurhan |
stepurhan's picture

@ Triggle

Steve Kesby |
Steve Kesby's picture

I'm in the £10K side of the room BUT....

Paul Scholes |
Paul Scholes's picture