Does anybody know the most tax efficient amount to pay directors for the new tax year 2012-13?
For 2011-12 I have been using £ 589 per month from an article I read online. This amount was Tax and NI free and somehow it also managed to ensure that the directors would recieve a full pension when they get their state pensionable age. I never did undertand how that worked but that's what it said. I checked several places on the internet and they all agreed.
You can pay a director up to the secondary threshold before national insurance becomes due. This is £144/week for 2012/13 (or £624/month or £7,488/year).
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
