This post was originally published on 25 March 2019 and updated on 1 April 2021 for freshness, accuracy and comprehensiveness.
Following HMRC updates, directors can increase their current salary without paying tax or National Insurance (NI) contributions.
From 6 April 2021, we advise our clients who are directors to increase their current salary to £184/week, or £797/month. Individual tax codes may vary.
The minimum wage rates will also be changing from 1 April 2021. You can see the new rates here.
Our dedicated payroll team offer a fully comprehensive service, giving you peace of mind that your payroll is being taken care of efficiently by professionals.
If you’d like to speak to us about our services, please don’t hesitate to contact us.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.