From April 2013, you should pay an increased salary of £641 a month (from £624…
Just in case you missed one of our previous communications, we thought it’d be a good idea to remind you of the most tax efficient way to get paid as a company director in 2012/2013.
From April 2012, you should pay an increased salary of £624 a month (from £589). At this level, you will pay no income tax or national insurance.
You will then also be able to take a dividend of up to £31,488 (net cash) without paying any additional income tax or national insurance (of course, this is dependent upon available company profits)
This means a director of a limited company can withdraw a total of £38,976 during the 2012/2013 tax year, without having to pay any additional income tax or national insurance.
You should seek our advice if you have other sources of income, such as tax credits or pension income and these additional income streams do impact on the figures above.