4 April 2018
Director salary levels 2017/18
Attached is our spreadsheet tool to help you decide the appropriate salary level for 2017/18. Some variables:-
- The Employment Allowance [EA] which enables a company to not incur Employers NI up to £3,000 only applies where more than one person is a paid a salary. Hence sole director companies will not be entitled.
- If a company has employees incurring more than £3,000 in employers NI the EA will not be available against the Directors Salary therefore no benefit paying at the higher level.
- If you have other income from pension, rents etc,, then it is more efficient to draw salary at the NI level rather than the Tax allowance level.
- As these issues are not easily explained we have endeavoured to make the spreadsheet interactive so you can find the appropriate salary level for yourself.
