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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£3125 a month. That would entitle them to £2500 under the CJRS. It was a joke.
I thought it was funny, Duggimon.
Depends - how many people are on the payroll?
More precisely, it depends on whether you can claim the NI back.
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.
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?
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.
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.
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.