Best PAYE option for 3 ltd companies?

[smnpukbmf]

I have 3 ltd companies and take small wages from each. I'm trying to avoid paying any Employer's NI if possible.

https://www.ecommerceaccountants.co...ent-way-to-pay-yourself-as-a-director-2025-26 suggests I can pay £416.66 per month (£5k p/a) to avoid paying any employee or employer NI but I won't achieve a qualifying year in terms of state pension.

However, if I pay £416.66 each month from two of my ltd companies, then £214.17 each month from the third company (totalling £12,570 per year), I think I'll pay no employee or employer NI, no tax (on this amount) plus I will achieve a qualifying year. Right?

Please tell me I've understood right!

Thank you!

 

[DWS]

I have 3 ltd companies and take small wages from each. I'm trying to avoid paying any Employer's NI if possible.

https://www.ecommerceaccountants.co...ent-way-to-pay-yourself-as-a-director-2025-26 suggests I can pay £416.66 per month (£5k p/a) to avoid paying any employee or employer NI but I won't achieve a qualifying year in terms of state pension.

However, if I pay £416.66 each month from two of my ltd companies, then £214.17 each month from the third company (totalling £12,570 per year), I think I'll pay no employee or employer NI, no tax (on this amount) plus I will achieve a qualifying year. Right?

Please tell me I've understood right!

Thank you!

If the Companies are associated then you may need to aggregate the earnings which will bring Employers N/Insurance into play

 

[David Griffiths]

Please tell me I've understood right!

Thank you!

You haven't. If the companies are associated there are different rules and you only get one set of thresholds shared between all three of them.

 

[Newchodge]

I have 3 ltd companies and take small wages from each. I'm trying to avoid paying any Employer's NI if possible.

https://www.ecommerceaccountants.co...ent-way-to-pay-yourself-as-a-director-2025-26 suggests I can pay £416.66 per month (£5k p/a) to avoid paying any employee or employer NI but I won't achieve a qualifying year in terms of state pension.

However, if I pay £416.66 each month from two of my ltd companies, then £214.17 each month from the third company (totalling £12,570 per year), I think I'll pay no employee or employer NI, no tax (on this amount) plus I will achieve a qualifying year. Right?

Please tell me I've understood right!

Thank you!

You haven't. The best way to avoid ER NI is to employ someone else.

 

[MyAccountantOnline]

You haven't. The best way to avoid ER NI is to employ someone else.

Have a read here https://www.gov.uk/claim-employment-allowance/eligibility

 

[Lisa Thomas]

You accountant/s should be able to answer this. Do you have one?

 

[DWS]

You accountant/s should be able to answer this. Do you have one?

With 3 Companies I would hope so, as it may not only be the ER N/I to worry about.

 

[Lisa Thomas]

With 3 Companies I would hope so, as it may not only be the ER N/I to worry about.

I would hope so too, but seems odd OP would ask a forum rather then the firm that has all the relevant details to answer the query...!

 

[UK Contractor Accountant]

You haven't. If the companies are associated there are different rules and you only get one set of thresholds shared between all three of them.

same for the small companies starting rate for corporation tax - £50K split across 3 companies.

 

[numbersrule]

What about VAT?
If three companies are associated does the one threshold apply to the combined turnover?

Not necessarily?

Each associated company has the benefit of the full threshold provided the services / scopes of the companies are unrelated.

I think for VAT it is more about the services or goods provided as opposed to the associatedness.

Or have I misunderstood?