If I pay 6240 pounds (520 pounds lower earnings limit times 12 months) all at once through PAYE, do I still get a state pension credit? Or do I have to pay myself 520 pounds every month?
The short is no, they are 'office holders' by default. But you can have directors with employment contracts (say in a larger business) which would make them subject to it.
@@HeelanAssociates If I am paying myself below the threshold to pay NI, and below the employer pension contribution, is there a limit on how much pension (employee) can pay? As in is deducted from the PAYE pay
You will also generally pay national insurance and secondary national insurance if you go all salary, which will cost you more than then 19% tax deduction. It’s why a mix is generally better.
@@HeelanAssociates thank you so much for answering.Maybe it is worth it if you are able to claim the employment allowance so you would save that 13.8%. I sent you an email because i wanted a quotation for my new limited company but didnt hear back. This is my email: aquileslo123@hotmail.com. Amazing valuable content on this channel
You are an absolute star! Thanks a million
No problem hope it helped :)
This is a really good explanation. Are you planning to do a 2022-23 version that takes account of the increase in NI threshold in July 2022?
Oh for sure! This one has added complexity :- )
If I pay 6240 pounds (520 pounds lower earnings limit times 12 months) all at once through PAYE, do I still get a state pension credit? Or do I have to pay myself 520 pounds every month?
You can do it in one hit.
Minimum wage rules not apply? How can I have business income of 100k but not pay a professional skilled salary ?
The short is no, they are 'office holders' by default. But you can have directors with employment contracts (say in a larger business) which would make them subject to it.
Thank you for the explanations. What about paying pensions when on a PAYE salary below NI?
Hi, could you expand a little more on this - you can pay salary under this limit.
@@HeelanAssociates If I am paying myself below the threshold to pay NI, and below the employer pension contribution, is there a limit on how much pension (employee) can pay? As in is deducted from the PAYE pay
Isnt it worth it to pay salaru so u can deduct 19% of corporate tax?
You will also generally pay national insurance and secondary national insurance if you go all salary, which will cost you more than then 19% tax deduction.
It’s why a mix is generally better.
@@HeelanAssociates thank you so much for answering.Maybe it is worth it if you are able to claim the employment allowance so you would save that 13.8%. I sent you an email because i wanted a quotation for my new limited company but didnt hear back. This is my email: aquileslo123@hotmail.com. Amazing valuable content on this channel