Employers NI

[mlgwilliam]

Hi,

Right on the verge of setting up my first (and last!) Ltd company...

If I pay myself a the minimum salary of £5715 do I (the company) have to pay any employers NI

Also, correct me if I'm wrong, but as I'm taking the salary equal to the lower earnings threshold I won't have to pay any tax or NI personally will I?

And is £5715 the correct amount?

I'm going to get an accountant, but I want to know if it's worth setting up a Ltd company first.......my main reason is I don't need the liability (no debt / borrowing in the company) but I would still like the protection a Ltd company gives,

thanks

[Tom McClelland]

Almost correct, except that in the first year you can only pay yourself pro-rata according to the setup and directorship appointment date without incurring NI costs. So if you set up (eg) on 6th October you'd be able to pay half a year's Earnings Threshold.

[propertybillionaire]

Whats is the likelyhood of Mr HMRC thinking 'are they trying to avoid NI and employers NI' and decide to investigate?

[Tom McClelland]

Whats is the likelyhood of Mr HMRC thinking 'are they trying to avoid NI and employers NI' and decide to investigate?

Absolutely no chance at all. This is totally standard practice and how hundreds of thousands of owner-managed limited companies pay their owners.

No-one is obliged to arrange their affairs such that they pay the maximum tax and NI.

[propertybillionaire]

I like that answer :-)

Sorry to hijack the post but other question which may help others -

If I had two companies and one employee say on £10k (same address etc. just doing two different things) and I employed the person on a 50 / 50 basis between the two companies (5k each) would I have to pay any employers NI?

[David Griffiths]

I like that answer :-)

Sorry to hijack the post but other question which may help others -

If I had two companies and one employee say on £10k (same address etc. just doing two different things) and I employed the person on a 50 / 50 basis between the two companies (5k each) would I have to pay any employers NI?


Yes. If you have associated companies they have to calculate NIC as if it were a single payroll.

Odds on: If you've thought of it, somebody else has beaten you to it, and the Revenue have put a stop to it!