Husband is sole director of his limited company, his wife is not a director but has equal shareholding and is employed by the company to do admin. Net profit before paying salary is £100k. The company therefore qualifies for £4000 Employment Allowance to use against Employers NIC liability for the tax year. Assume that after paying salary the remaining taxable profit is taxed at 19% and remaining funds are drawn as dividend and taxed at 7.5%.
My calculations suggest that paying each director c.£23250 salary (all NIC'ers covered by allowance, £1642 NIC'ees) results in an overall tax liability of £16699 whereas paying each director £9568 (no Employer or Employee NIC due) results in an overall tax liability of £20276. That seems a considerable saving of £3577 and I've checked this a couple of times.
Have I missed something here?