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What is the optimal salary

Difference in NI thresholds so what is the new optimal salary

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As employee NI doeesn't kick in until £792 and employer art £732 what is the optimal salary for montly paid directors for 2020/2021?

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By Duggimon
07th Apr 2020 08:10

At the moment it appears to be £3,125

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By 0098087
07th Apr 2020 08:22

£260 a month?

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By Duggimon
07th Apr 2020 08:23

£3125 a month. That would entitle them to £2500 under the CJRS. It was a joke.

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By 0098087
07th Apr 2020 08:30

Sorry..still early!

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RLI
By lionofludesch
07th Apr 2020 09:11

Duggimon wrote:

£3125 a month. That would entitle them to £2500 under the CJRS. It was a joke.

I thought it was funny, Duggimon.

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ALISK
By atleastisoundknowledgable...
07th Apr 2020 08:23

Depends - how many people are on the payroll?

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By 0098087
07th Apr 2020 08:31

Sole director companies

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RLI
By lionofludesch
07th Apr 2020 09:14

atleastisoundknowledgable... wrote:

Depends - how many people are on the payroll?

More precisely, it depends on whether you can claim the NI back.

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By 0098087
07th Apr 2020 09:23

Single director so no repayment.

Second one around £792 for around 1 month as it's his son

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By lionofludesch
07th Apr 2020 16:02

0098087 wrote:

Single director so no repayment.

Second one around £792 for around 1 month as it's his son

Applies equally to companies who claim the maximum £3000 EA.

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By hje
07th Apr 2020 19:44

£4000 innit?

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By whitevanman
07th Apr 2020 09:26

Does it not depend on whether you want to have a NHS going forward, oh and pensions and all the other services you seem to take but decline to pay for?

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By Duggimon
07th Apr 2020 15:48

Essential services funded by optional taxes. There is indeed an obvious problem here but you're directing your complaint the wrong way.

You can't have a tax system that makes National Insurance optional then complain at people who choose not to pay it.

Why not just pay for everything out of regular tax and put taxes up accordingly? Nobody is choosing to have no income to avoid tax, they're choosing the means of remuneration that gives them the best outcome for themselves, which is a fundamental right enshrined at the core of our whole tax system.

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By tom123
07th Apr 2020 16:00

As a mere PAYE slave, I am looking forward to my optional NI..

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By whitevanman
07th Apr 2020 19:38

Perhaps you should read the case of PA Holdings. Dividends paid as remuneration for services are nonetheless remuneration and liable to NIC (and PAYE should apply).
So, only where the dividend is not remuneration should it be exempt from NIC. Choosing an optimal figure to minimise charges to tax and NIC is not in fact enshrined in our law. It is just like the loans in avoidance schemes. Not really a loan.

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By ireallyshouldknowthisbut
07th Apr 2020 09:38

Its not been a "one size fits all" for some time

You need to work it out properly depending on your client's circumstances and their preferences.

We have some clients on a lower sum due to not wanting a quarterly PAYE bill. Others don't mind that and would prefer an more optimum tax position. Horses for courses.

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By mikeyban
07th Apr 2020 20:26

The answer if you want least hassle is £732... I hope that helps ..

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