It depends on your definition of "much simpler". It's extremely simply for me to update Directors pay in July.
Using the annual method, £992 x 12 is fine. It wouldn't work if the alternative method is used, of course.
I agree, £823 Apr-Jun, £1048 Jul-Mar.
In short, we (a profitable company with no employment allowance) should always pay Directors salaries up to the primary threshold, not the secondary threshold. This is because employers NI at 15.05% is less than CT at 19%.
Gross Pay = £2,000 per month QE = £1,497 (£2,000 - £503)
Without salary sacrifice: Employee contribution (3%) = £44.91 Employer contribution (2%) = £29.94 Total contribution (5%) = £74.85
With salary sacrifice: Salary sacrifice for employee contribution (3%) = £44.91 Employee contribution (0%) = £0 Employer contribution (5%) = £74.85 Total contribution (5%) = £74.85
My answers
It depends on your definition of "much simpler". It's extremely simply for me to update Directors pay in July.
Using the annual method, £992 x 12 is fine. It wouldn't work if the alternative method is used, of course.
I agree, £823 Apr-Jun, £1048 Jul-Mar.
In short, we (a profitable company with no employment allowance) should always pay Directors salaries up to the primary threshold, not the secondary threshold. This is because employers NI at 15.05% is less than CT at 19%.
Gross Pay = £2,000 per month
QE = £1,497 (£2,000 - £503)
Without salary sacrifice:
Employee contribution (3%) = £44.91
Employer contribution (2%) = £29.94
Total contribution (5%) = £74.85
With salary sacrifice:
Salary sacrifice for employee contribution (3%) = £44.91
Employee contribution (0%) = £0
Employer contribution (5%) = £74.85
Total contribution (5%) = £74.85