17 March 2023

Tax efficient salaries 2023/24

Hopefully the government will not tinker with National Insurance this year and we have fewer salary options to notify for 2023/24 (starting April 2023). However it remains difficult to generalise and there remain options.

For companies with other employees the payroll run will advise the net salary and PAYE due so this is aimed at Director only companies.

Company with two or more Directors (A)
Each Director - Net salary £1,047.50 per month
PAYE to pay quarterly - Nil

Company with one Director (B)
Net Salary £1047.50 per month
PAYE to pay quarterly - £119.85

Notes
A - This company qualifies for Employment Allowance so pays less NI

B - as Employment Allowance cannot be claimed a sole director company has this small amount of NI to pay

In most cases we recommend the level of salary quoted above but a sole director company who prefers to not make payments of PAYE and perhaps has income from outside the company then draw £758 per month.