How much should I pay

[fuel4life]

How much as a director should I pay myself pm with regards tax efficiency.

I am aware I should use my wage to use my PA and cover NI but take other monies from the business as divs.

Ps 2 directors man and wife. Last year we took £500pm each but was not sure this year due to PA increasing

My tax code is 647L
My partners is 425L


Thanks

 

[fuel4life]

In that I was told 603L was £500 pm is the following the correct assumption?

I'm guessing mine is: 6470/12 = £539.17
Hers is 4250/12 = £354.17

But I dont know for sure.

Would this cover our NI contributions to maintain pension (if such a thing will still exist)

Thanks again for any time you spend helpng me

 

[frauke]

To get NIC credits for pension purposes - the pay must be over the NIC band of 4,940pa (£95pw) - under this amount you will not receive any NIC credits.

Anything between this amount and £110.00 gives full credits, without paying a contribution towards NIC. Over this amount and you have to make NIC payments.

I think this is why no-one has answered your question. I haven't answered your question as these are just 2 things that need to be considered, before looking at the Income Tax and allowances etc..

Your wife is not receiving any NIC credits towards her pension - her pay is too low.

Theses are things you should discuss with your accountant. To go through the options and the implications.

 

[fuel4life]

Thanks for the answer.

To confirm with no other INCOME A "normal" PAYE wage of £96pw will give full tax creadits re. Ni


Is that right?

 

[maidofkent]

Yes, for this year 2009-10, that is correct.

MoK

 

[fuel4life]

Thanks for the reply. Much appreciated