Spring is in the air and the next tax year started on 6th April which means it’s time to review your salary if you are a director and shareholder of your own company. Due the change in the taxation of dividends from 16/17 and the potential impact of the Employers allowance the calculation is a bit more complex that in the past. However if you want to keep things as simple as possible then my recommendation is to go with an annual gross salary figure of £8,400 or monthly of £700 , which is just below the threshold at which you have to start paying national insurance.
It may in some circumstances be slightly more tax efficient overall to go with a higher figure of £11,850 which is the personal tax allowance for 18/19, but the downside is you will need to pay some national insurance. Personally I’m sticking with £8,400 as I don’t like to create extra admin for myself if I can possibly avoid it.
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