Most Tax-Efficient Director’s Salary for 2025/26
The optimal salary strategy depends on whether your company qualifies for the Employment Allowance, which offsets employer National Insurance contributions (NICs). Option 1: Sole Director Without Employment Allowance If you’re the sole employee/director, your company isn’t eligible for the Employment Allowance. Tax Implications: Note: This approach avoids NICs but doesn’t earn National Insurance credits towards […]
What is the most tax efficient salary for a director?
Most Tax-Efficient Director Salary for 2024/25 As a company director, paying yourself a tax-efficient salary is crucial to maximising take-home pay while minimising tax liabilities. With the 2024/25 tax year in full swing, here’s how to structure your income for optimal tax efficiency. Key Considerations When deciding on a director’s salary, you must consider several […]