How to Pay Yourself as a Ltd Company UK | BEST Directors Salary 2023/2024
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- čas přidán 26. 03. 2023
- The MOST TAX EFFICIENT SALARY to pay yourself as a Director of a Limited company in 2023/2024. This is the EXACT Director's salary that I will be PAYING MYSELF this year.
For the majority of small businesses, a combination of a basic salary and dividends will be the most tax efficient way to yourself from a Limited company in 2023/2024.
For the past 4 years, I have released videos explaining the BEST way to pay yourself from a Ltd company.
In previous years, I have recommended that directors pay themself a basic salary up to the Secondary National Insurance threshold, however, that is no longer the case.
The secondary NI threshold has recently been increased to match the personal allowance at £12,570. This means it is now more tax efficient to take a slightly larger base salary.
Here are some of the key pieces of information from this video that you may find helpful:
These are the Income Tax rates and thresholds for 2023/2024:
• Personal allowance = £12,570 (0%)
• Basic rate = £12,571 to £50,270 (20%)
• Higher rate = £50,271 to £125,140 (40%)
• Additional rate = £125,140+ (45%)
Note: You lose £1 of your personal allowance for every £2 you earn over £100,000
These are the National Insurance rates and thresholds for 2023/2024:
• Lower Earnings Limit (Benefits Threshold) - £123 per week / £533 per month / £6,396 per year
• Primary Threshold (Employees) - £242 per week / £1,048 per month / £12,570 per year (aligns with personal allowance)
• Employees Rate: 12% up to £50,270 and 2% over £50,270
• Secondary Threshold (Business) - £175 per week / £758 per month / £9,100 per year
• Employers NI = 13.8% above the secondary threshold (no reduction over £50,270)
National insurance is the main reason why directors pay themselves Dividends, it helps avoid the double taxation of combined employees and employers National Insurance which would be 25.8%!
Corporation Tax
• Payable against net profits made by a Ltd company
• Allowable business expenses can be offset against profits to reduce your corporation tax liability
• Your salary & employers NI are allowable business expenses
Corporation tax rates for 2023/2024
• Less than £50,000 (Small Profits Rate) = 19%
• £50,001 to £250,000 = Marginal Relief
• £250,000+ = 25%
Dividends Explained
• Dividends are payable to shareholders from profits or retained profits from previous years
• They are not subject to National Insurance or Income Tax, instead, they are taxed separately via a Dividend tax.
• Dividends can be paid monthly, quarterly or at any time throughout the year (interim dividends) or after the annual accounts (final dividends)
• Dividend tax is paid via self assessment
• The tax free dividend allowance for 2023/2024 is = £1,000
Dividend tax rates for 2023/2024
• Basic rate = £13,571 to £50,270 (8.75%)
• Higher rate = £50,271 to £125,140 (33.75%)
• Additional rate = £125,140+ (39.35%)
Optimal Director’s Salary 2023/2024
• Recommended Salary: £1047.50 Per Month / £12,570 Per Year (Above this use dividends)
• Makes full use of the personal allowance (no income tax due)
• Above the National Insurance LEL threshold to qualify for benefits e.g. state pension
• Below National Insurance primary threshold (no employees NI due)
• Above National Insurance secondary threshold so employers NI becomes due from £9,100 to £12,570(£3470 at 13.8% = £478)
• However, this is tax deductible from corporation tax at a minimum of 19%: £3470+ £478 at 19% = £750 (Save £272)
• Note 1: NI payments will need to be made to the HMRC monthly/quarterly, the best salary that doesn't require National Insurance payments is £9100 per year.
• Note 2: A £5,000 Employment Allowance is available to Ltd companies with at least 2 directors/employees (inc. husband & wife directors) earning above the NI Secondary Threshold
Dividends vs Salary
For many small businesses, the most tax efficient way to pay yourself is with a small salary and then dividends on top. However, in some situations, it may be more tax efficient to pay a full PAYE salary instead. Always check with an accountant what the best directors salary would be for your Ltd business.
How do you pay yourself as a director of a Ltd business in 2023/2024? Let us know your plans in the comments below!
▶ Here is my NEW VIDEO with the LATEST FIGURES for 2024/2025: czcams.com/video/0AsgCD6uIKc/video.html
This is why HMRC has so many employees. Life should not be this complicated.
You work for 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k in a meme coin for just few months and now they are multimillionaires. I pray that anyone who reads this will be successful in life
Starting early is the best way of getting ahead to build wealth, investing remains a priority.
People prefer to spend money on liabilities , Rather than investing in assets and be very profitable.
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted, I became more better the moment I realized this.
To be a successful person in life requires him or her of hard work and time
@@heatherkay4982 Talking about been successful. I know I am blessed if not I wouldn't have met someone who is as spectacular as Kayla Malone
No accountant has ever told me that employer's NI is a legitimate business expense. You've just saved me some money. Thank you!
You shouldn't need telling!
@Awreet Meowd have you never learnt anything, from anyone, ever?
@@googlesucks925 Of course, I've just learnt that I should write better comments, I meant the accountant should do it anyway.
@@awreetmeowd ah ok I'm with you. Totally agree but you'll be surprised how many don't.
You need better accountants! ;)
Interesting. Would love to see a part II where you include the dividend payouts in the calculations for hypothetical turnovers of, say, 100k and 200k. Part III could include assesments of when it’s best to just leave some profits in the company, e.g. to invest in the stock market through the company to build up your own pension fund that you can pay yourself from in the future.
Can you do this?
Yup, one of the great benefits of being a company director is the pension you can have. You can buy commercial property through your company pension too, in a type of arrangement called an SASS. Worth doing a deep dive into. If you have the option to work for yourself through your own LTD company vs being an employee then there are benefits to doing so.
Turnover has got nothing to do with profits
@@Endurorodzndubz Well, turnover is normally the basis of your profits, but apart from that, how is this relevant to the question?
@@Endurorodzndubz Turnover is vanity. Profit is sanity. Cash is King. One look at Amazon shows volume turnover with very minimal taxable profit. On their turnover the £12750 tax free payment would require over £200,000 at their nominal 5% profit margin. Turnover is irrelevant, as you wisely stated. It’s about the tax deductible expenses and investing in short term infrastructure that keeps Amazon’s reported margins so low. You only pay tax where it’s unavoidable, employee PAYE, which is why growth companies are so supported by governments.
As a chartered tax adviser, your understanding of everything is bang on (I know you're not looking for validation) and as you said, is likely explained better than most accountants will.
The disclaimers in your video are very important too, this is not a one method fits all. For anyone with varied income sources or a high profit (£50k+) limited company, speak with a qualified accountant or if you can, a qualified tax adviser to ensure you are paying the lowest amount of tax possible.
Great video.
Great! Can you utilized the unused personal allowance at the end of the year? Like get salary for last three months?
I did nôt To get the Last page… salary. Why 9000 minus 12000. ?
Absolutely the video I needed. Straight to the point and broken down clearly! Keep it going!
Hi, would it be possible for you to make a video with an extra scenario where the director also has employment income? Would love to see the interplay between the two. Thanks!
Absolutely applies to all side hustle directors. Please do !
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My hobby and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@hunter-bourke21 Interesting. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
“Camille Alicia Garcia” is the advisor that oversees my portfolio. She's an extremely intelligent person, very thoughtful, cautious and has an outstanding credentials. It's easy to find her on the web.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Also worth noting that you can make up to 40k/year contribution to your pension that is also a valid business expense that is corporation tax deductible. This can really help if your profits are pushing you into higher tax bracket, just stick it in your pension instead directly from your Ltd company.
The annual allowance is now £60k, plus potential to use brought forward allowances. Pensions are great for tax but your company needs profits AND excess cash, which is the tricky part for a lot of small businesses.
thank you! Can you please make a video about the best way to invest company profits so that I can make gains on the cash that's sitting there rather than it drowning in inflation? I'd like to put some profits into digital; assets and cash out the gains which would be a nice bonus.
Great video. Would love to know more about what to do with dividends. Trying to get my money out of my business is a head pickle, 12k a year probably pays for the groceries!
I had already figured this amount but still watched all the video for confirmation plus we are always learning, and things are always changing, like I did not know yet dividend allowance was down to £1k and £500 next year, thank you.
It is completely incorrect to say that dividends are not subject to income tax, they are, but at a different rate. Crucially, dividends contribute to the total income liable for tax, including taking you over the £100k threshold at which the personal allowance starts to be withdrawn. In that case, it is worthwhile reducing your income liable for tax by paying the excess into your pension fund or making donations to charity. That’s what I do because I would much rather choose how my money is spent rather than let the government squander it on my behalf.
and keeping in mind that Dividends are paid out from TAXED profits, dividends are never tax-free, even your £1000 annual dividend allowance
Revisiting this video now that my savings are earning me well over the personal allowance. Higher interest rates have changed the big picture.
Better than an accountant. . Very clear and easy to understand.
This is clear and useful. The explanation however should go further to include the dividend element that would otherwise have been paid if you had the £9100 salary, so you don’t show the ct saving from the higher salary only
Assuming you top up your income with dividends you will have no unused personal allowance left to offset, so you will pay dividend tax on the extra £3,470 @ 8.75%, i.e.£303. So, you save £750 Corporation Tax but pay employee's NI (£478) plus additional dividend tax (£303), totalling £781. You only save tax on this if you don't draw dividends.
Thank you. This is amazing. I started two CZcams coachning niche channels and looking to register as a limited. I have been looking into the best way to run them as separate entities or as one business.
A good video setting out the basics. I'm amazed at the number of people asking for updated videos or videos tailored to their specific circumstances. Go see a decent accountant who can discuss your precise circumstances.
It's criminal that the tax thresholds have been frozen for so long. Really need that high rate threshold to go up!
They do,
I'm 20 and on track to break into that higher rate pretty soon and it is quite infuriating!
They want the public to suffer inflation
This is brilliant. I’d love to see the dividends worked out through each tax bracket as well as how it works for sole trader
When say sole trader, obvs not divs as not Ltd company, but the differences between Ltd vs Sole Trader
Sole traders are termed Managing Directors for car insurance purposes. A limited PLC only requires one active director. When the tax advantages are there you incorporate.
Yes, that is what I said to the directors by email the other day. Your logic is correct (and this is very simple for us qualified accountants). The remaining issue is what to do once you get past the £13,570 each for you and the wife. While dividends at 8.75% is one option, the problem is the company is still suffering 19% corporation tax. One could also suggest making employer pension payments into say a SIPP. On reaching 55 (58 from 2028) you can draw the 25% tax fee lump sum.
This video is amazing thank you! Could you possibly do one for 2024/2025? Given that April is rolling around this would be great!
Great stuff, a similar video but for people with a side hustle would be great to see. I'm earning just below the 40% income tax bracket with a side hussle income to work in some how. Would be really good to get your option on the most tax efficient way to work this :) Thanks
You can’t avoid tax when your basic tax free allowance is eaten up by your salary. A side hustle must morph into a business as your sole income to take advantage of what’s described here.
Is this a good time to buy stocks? I know everyone is saying stocks are at a discount and all, but just how long will It take for us to recover, obviously there are strategies to maneuver in this present market but these strategies doesn't come common to the average folk, or am I better off putting my money elsewhere?
@Azeez Nafiu The uncertainties accompanying this present market is more reasons I have my daily investment decisions guided by a portfolio-coach seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to outperform. Netted over $1.5m in return on investment, since using a coach for about 2years.
@@MaryTongx "Christy Vallen D'souza" google that name and thank me later
amazing video, i dont suppose i could run things by you as a mentor perhaps? so fantastically explained but im a public health worker with a decade of not knowing this language!
An important decision affecting the salary/dividend balance is around pension contributions. You can only get tax relief on contributions to the lower of £60k or qualifying earnings. Dividends don't count towards the qualifying earnings.
Thanks for posting this, it is so helpful to see your easy to understand explanation of all to discover. I wish I'd seen your advice years ago!
Thank you. I got some clarification of paying myself from my Ltd company
Informative video. I think this depends a lot on your accountant. My account informs me there will be an additional charge for dealing with NI - so I never go that route.
I take £9K Sal + Expenses + Accountant + Pension away from Co. income, leaving Profit. Then take away Corp. Tax - the rest is a Dividend.
From Dividend+£9K Sal, take Personal Allowance and £1K - the rest is taxed as per Dividend taxes (8.75 / 33.75 / etc.). That is it. Maximise your Pension payments to reduce taxes.
Love the video. Would love for you to do an example like if the company makes say £150000 without accounting for any salary taken, what would be the figures for salary and dividends and frequency at which to take dividends
I would like to see this scenario too please
This is incredibly helpful!
Could they make the tax system any more complicated?? Mental. Well explained!
Always clearly explained, thanks for the info.
Great video as usual, thank you!
This is gold - subbed !
Me too!
Quick Question: at 11:19 Regarding employment allowance with LTD companies with at least 2 directors. Is it "directors" or "employees" I didn't think it had to be 2 directors, it's called employment allowance and not directors allowance. Please correct me if I am mistaken.
I am too stupid to understand this, but thank you for for providing this useifl information
Thank you. The exact video I was looking for
Great stuff, explained really well.
I was going to stick with the 750 per month but now this has got me thinking.
How do you do that and afford bills? Im just starting out with this
@Jamo2000 I pay monthly dividends. I also have my partner on the books as a 50% shareholder, so she gets the same dividends, too.
This is really good, I think would be nice to be a video where you will compare a Sole Trader to LTD with the same profit but show the difference of how much tax you could save or not save if you are LTD or Sole Trader
But the messing about with HMRC with NI payments takes so much time that £270 isn’t a saving
So happy to come across this.. Thanks for the contact
I wanted to ask what if you're working as part time employee, how do you combined and what's the suitable payment to pay yourself using PAYE under the limited company?
Many thanks for the informative video. 👏👏👏
Would it be possible to include Scottish income tax rates as well as uk in your outlines? Excellent video which was very informative.
Thank you for this, especially as I am a new subscriber.
Thanks for this I didn't know dividends had dropped 1k so thank you
Very informative video. Thank you.
Thx im self employed painter and decorator and have just won a tender that means im likely to get up to 80k this year so im considering setting up as ltd comp amd taking divs
So glad I found your channel I’m just registering my business and this is just what I needed to know. I have subscribed and will want to know more about initial funding of a ltd company hopefully I can find a video 😁
No, what you need to do is find a decent accountant who will discuss your exact personal circumstances and work out a plan tailored to you. You can't have a 1 to 1 chat with a CZcams video.
@@andrewcarter7503 Well it worked out well for me in the end buddy. Thanks for your input 👍
Could you look at this again from the position of a sole director who is also drawing the full UK pension? I expect the salary / dividend ratio would change, maybe with no salary. But your analysis would be greatly appreciated.
Thanks for the video, useful to an extent but would be good if you could go further and explain how you pay yourself an additional salary - for example, if I had a ltd company that was generating £15k per month, and let's say I wanted to pull down £7k for personal use to cover all the bills etc, what would be the most tax efficient way of doing it?
You ensure your own property is a company asset with minimal rent against which tax deductible expenses may be written down. You ensure any personal expenditure is a tax deductible. And have a minimum of six months dividend payments on hand to cover personal expenses till the interim and annual dividends replenish that fund.
Great video - thanks!
Hi Darren. Very useful video, but you forgot to include Pension, which you obliged to pay if you earn more than £10k per year. This will add another 8% to total company costs and make salary of £758 still the best choice.
You don’t have to pay a pension as a Director its optional
@@xGunno thats correct and for arguments sake even if you did, you recipient employee (you) can elect to opt out.
Was waiting for this, as I always go back to previous videos to check my logic when making plans for the new year 😂 can you cover the obligations of an employer for registering employees for pension contribution? Thanks
What would you recommend if you want to maximise your SIPP contribution which is 40k going to 60k?
Hi there
Very informative video.
Could you make an update for the following year 2024-2025 ?
well explained.
Great video. Thank you
Very interesting - many thanks 👍😊
Would be really helpful if you can make a video on paying pension via a LTD company. I'm trying to pay my pension and get the most out of my company, but also receive 25% gains via salary sacrifice. Currently I am paying my salary and then making payments from my personal account to my pension to receive the 25% top up.
Thanks, very helpful
Thanks
Why didn’t you add the best amount of dividends to pay?
Useful.infos an tips to offset tax ie expenses
How to pay yourself. Have an offshore holding account as the businesses main account so you avoid tax. Pay the director a nominal salary of £1 a year , then pay the director a non repayable loan for whatever you want Simples.
Its what most major corporations do and most senior politicians.
You still pay VAT and corporation tax right?
What would the best way be if you earned 100K/year through a PAYE full time job as well as through an ltd for property
Tax efficient way is Offshore. Anything else is waves in a bucket.
How many tax returns do you file?
I set up a limited company on 14th January 2021
• Filed a confirmation statement on 16th January 2022
• Filed dormant accounts on 31st October 2022
• Filed a confirmation statement on 12th January 2023
And I have had a couple failed to deliver tax return penalties.
I don’t understand??
What would be the optimal directos salary for 4 owners (two married couples) with a company turning over 100k annually ? Would the same allowance and principles apply? Could they all use the same structure to maximise their tax allowance ?
Thank you, would be really interesting to see examples of company earning certain amount and how the percentages work out overall based on salary and dividend withdrawal. To fully understand why this is best. It does sometimes feel that running a ltd, you end up paying more tax than you would as an employee else where (not your own company) seems only once the company is seriously making money 6figures or more then perhaps the tides turn on tax. Would you agree?
Really helpful, thank you so much.
I’m looking into putting cash into a pension vs Lifetime ISA. I have a limited company and I’m the only director so how I’m keen to compare the cost of both to myself and the business. Do you have any advice on this?
"Good morning,
I'm interested in closing my limited company along with its registered brand. While I'm familiar with the process of closing a limited company, I'm uncertain about the implications for the brand.
If I close the company, will the brand automatically be closed as well?
If not, could you please advise me on the procedure for closing a registered brand in the UK?"
Thank you. But I did. Not get the last page. Salary. Why 9000 was deducted from 12000 ?
Awesome video. Thank you very much. I have set myself up as digital nomad so to speak and work from contract to contract from a converted van since August. Can I charge the conversion costs including the costs of the van to my business?
I'm wondering how to pay myself a monthly salary of £5k - £10k a month as the owner of a UK business and legally pay the least amount of tax? Also, does the salary get paid out of the revenue or the net profit of the company? The salaries of my employees will be paid out of the revenue, but what about my salary? Am I entitled to choose exactly how much salary I get (assuming the business can afford it)? Does the salary get paid into my personal bank account, or should I set up another limited company business and bank account (separate from the business that I own) in order to pay my salary into? How is my salary taxed? There is about £2.2m in annual revenue and around £100k in profits per year in the company.
Why the £3470 is tax deductable?
I thought it should only be the £478 as it is going out before profit, but the £3470 isn't being paid out. Unless you are calculating it twice as part of the salary of £12570 which is tax deductable.
Exactly the comment I was looking for. That £3470 cannot be included here also unless you want to hype up the tax savings. The actual saving is only £470x19%
@@akashram228 Exactly. I wish he replies to clarify.
Although you end up paying 478 of NI on the difference between 12570 and 9100 you still end up better off overall. This is because both the salary of 12570 and the 478 of ni are deducted from taxable profits (therefore not paying Corp tax at 19% on either amount)
If you decided to just pay yourself 9100 rather than 12570 to avoid paying the NI you would pay CT of 19% on 3470 costing 659.30.
659.30 - 478 = 181.30 plus the 90.82 you save in CT on the allowable NI expense totals the 272.12 mentioned in the video.
Ultimately it depends if you can be arsed with the responsibility of paying your NI monthly/quarterly for the sake of 272 quid in tax savings a year. Most accountants would probably do this for you at no extra charge if they already prepare your accounts.
Would you not be saving on dividend tax too if you’re increasing salary - under the personal allowance - and, therefore, reducing dividend payments?
If the director is non resident/citizen, will all the same rules apply??
Cheers mate!
Hi I’m new to the channel and have just watched your very informative video and subscribed. I’m looking at your back catalogue but can’t see anything on IR35. Would your recommended figures still apply, if caught by IR35, or do you have a different video on this?
If you are caught by IR35, then you dont get to divert the earnings to dividend, as you have to pay PAYE and NI on the Net earnings (after some allowable deductions) as if you have paid it all as salary
I want to switch to contracting but worried that the current economic climate might not be the good time to do it, and better to stay in my "safe" permanent role.
do you have part 2 paying your self a dividend and the rates you can pay and the tax applied for 23/24
Great video as always but the £5000 employment allowance is based on two Employees not just two Director's. I'm sure I'm correct on this one?
Yes, you are correct
How many shares should you allocate your company upon registration as a single LLC which will not employ anyone?
100
Basic tax
rate
20%
Upto £37,700
Highertax
rate
40%
From £37,701to
£125,140
Additional
tax rate
45%
Above £125,140
Unfortunately you are wrong about the 40% tax bracket
Hi Honest Money
Great video very informative
Note 1: NI payments will need to be made to the HMRC monthly/quarterly - Question ??
I pay my salary on an annual basis , once a year
we are setup for " Annual scheme " on RTI system all ok
Can I also pay my Employers Class1 NI once a year in March , when I submit my final FBS ?
Are you working on the 2024/2025 update of this for the channel?
What would be the best way to pay your self from your LTD company if you already have a full time job earning £100k (higher tax bracket).
Can you do a calculatuon on more realistic ernings around 50k , no offence to anyone but cannot imagine anyone surviving on 12k. Or yoir advise is to just stick to 12k and pay out rest in dividends
If the director is not resident in the UK, can he pay himself by PAYE? It seems that the director who is not resident in the UK cannot get the UTR required by PAYE, can the UTR obtained by SA1 be used for PAYE?
Thanks for this video and I am glad to have found your channel🙏. Doing it this way, is it fair to say then I am essentially only paying 8.75% tax?
Your question cannot be answered accurately without further details. Mainly being the total income amount you are referring to.
Any amounts you pay as dividend are already taxed at a minimum of 19% (
You say that corporation tax is payable against net profits. Surely corporation tax is payable against gross profits, which then creates the net profit surely?
I'm not sure this is particularly honest. its certainly immoral not to tax yourself at the levels your employees are. Secondly i work in insolvency and there are hundreds of Directors who wonder why i come after them to repay illegal dividends after they've bled their company dry taking a "regular" dividend when their company has been losing money hand over fist. You may have pointed out that you can only pay dividends out of profits but it was so fast no one would have noticed it and you certainly didn't point out the potential consequences
Can a Uk Ltd pay salaries to Virtual assistant outside the UK? As they handle their business and salary of them are expense so how to manage that thing?
I think I am right in saying that once over pension age you do not pay National Insurance contributions as an employee, but does the employer contribution still have to be made?
not as far as I know
Employer NI contributions still have to be paid once an employee reaches state pension age.
@@peterdon-duncan7851 Thanks, much appreciated.
How do we live off this amount if our bills are higher then what we pay ourselves?
Hey thanks for this but you didn’t cover dividends!
Just take salary away from £50,270 and that’s your div
a blind man is going to see where this is going If Labour come to power they will make dividend tax the same as income tax and Directors will be paid via salary its been too good for too long and this loophole will close we have already lost most of the tax free dividend allowance
Dividends are paid out of company profits that have been taxed. Salary is a tax deduction to the company, so no tax is paid by the company on this
Dividends are not tax free (and never have been), they have ALREADY been taxed. The current tax set up is where the govt is trying to equalise the overall tax paid between dividends and salary. But they cant recover the National insurance difference, so there is always going to be difference due to this.
Even Labour cant phuck around with dividends too much, as this will directly impact foreign investment into the UK (amongst other things)
I have two small companies with my wife, so isn't it better to pay ourselves 9100 from one company and the remainder up the 12570 from the other company? Because then we literally have 0 employers NIC? (While the company paying 9100 gets us the NI stamp)