I have husband and wife directors for a new limited company set up 10th October 2014. They run a cafe and have paid some staff to date but all below NIC thresholds - so the £2k Employers Allowance is still available but they have very little cash funds at the moment so any salary is likely to be credited to the Directors account and I am looking to keep any cash outgoings (i.e. Employees NIC to a minimum). I understand that £7956 is the optimum annual salary to qualify for state benefits but can't quite get my head around how this works if the company has only been running since October?
Your help would be much appreciated. I would also like guidence on whether, if they have not appeared on the RTI returns until now whether I should put their start dtae at 10/10/14 or 6/3/15? Many thanks
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NI threshold is apportioned
Hi there _ I'm pretty sure that the NI threshold is pro-ratad from 10 October to 5 April so the directors will only be able to earn about half the threshold before hitting NI contributions.
If the company was set up in October, you are stuck I'm afraid you can't backdate their start date to a time when they were not directors.
Sorry no idea
I could use the excuse that the New Sate Pension starts next year, but I don't know the rules for the current system either, sorry.