DIRECTOR'S REMUNERATION POST 5 APRIL 2014

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?

Comments
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Assuming a normal Tax Code

The Tax Factory Ltd |

Just in time

Euan MacLennan |
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while

memyself-eye |
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£7956 = £153 pw

BananaMan |
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I have reviewed this and £660

mikeyban |

BananaMan and mikeyban

petersaxton |
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In the OP's suggestion ...

Old Greying Accountant |
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There are a few more things

MJ Green Accountancy |

Annual earnings for director

jamesreeves |

As an aside ...

Old Greying Accountant |
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I agree

petersaxton |
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Annual earnings for director

MJ Green Accountancy |

P11D

Sherman Holter |

P11Ds have always been necessary for directors...

Steve Kesby |
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Really ?

Sherman Holter |

My point was...

Steve Kesby |
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Apologies Steve

Sherman Holter |

I haven't checked out the other thread but...

mackthefork |

Yes

BananaMan |
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