THE BEST DIRECTOR’S SALARY FOR 2021/22 (UK LTD)

Wondering what ‘the best’ salary for you as a limited company director is this year? In this video Dan runs you through the key information you need to know.
Topics include:
Should I pay myself dividends or salary
Best salary 2021
Best salary 21/22
Dividend Tax Rates
Income tax rates uk
What is best salary or dividends
How dividends work
What is salary
Directors salary basics
How salary affects corporation tax
How national insurance works
Should you pay national insurance as a director
Tax efficient salary UK director
Lower earnings limit 21/22
Primary threshold 21/22
… and more!
Useful blog on employment allowance mentioned: www.heelanasso...
You can see more about what we get up to on the following:
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Podcast: heelanhub.co.uk The HeelanHub Podcast, a show for small business owners.
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Web: www.heelanasso...
Call: 02392 240040 Email: [e-mail]
#dividends #ltdcompany #tax #director

[@filiperodrigues5909]

You are an absolute star! Thanks a million

[@HeelanAssociates]

No problem hope it helped :)

[@martinprice_systemhorizons]

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?

[@HeelanAssociates]

Oh for sure! This one has added complexity :- )

[@spidermain]

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?

[@HeelanAssociates]

You can do it in one hit.

[@coderider3022]

Minimum wage rules not apply? How can I have business income of 100k but not pay a professional skilled salary ?

[@HeelanAssociates]

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.

[@epiphgd4302]

Have you any videos on directors being paid a tax free ISA? I’ve read about it but don’t really understand the pros/cons. Cheers. P

[@HeelanAssociates]

This is more investing in a tax free ISA i am guessing? You still have to get the money out of the company, which involves tax depending on the level of income, but the interest earned in the ISA is tax free.
Consider though most tax payer have somewhere between £500-£1000 interest tax free anyone, so it's work weighing up interest rates.

[@adinkracrafts]

Thank you for the explanations. What about paying pensions when on a PAYE salary below NI?

[@HeelanAssociates]

Hi, could you expand a little more on this - you can pay salary under this limit.

[@adinkracrafts]

@@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

[@allos4888]

Isnt it worth it to pay salaru so u can deduct 19% of corporate tax?

[@HeelanAssociates]

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.

[@allos4888]

@@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: [e-mail]. Amazing valuable content on this channel