about Inland Revenue screwing me!

[listlessinlondon]

Not literally, of course

I'm a company director but only in name. I don't receive shares. Basically I'm a salaried manager with bonuses but because the company gave me and others the title of director we are taxed heavily on them while other higher paid salary managers are being taxed less?

Who do I shout at here (please don't say me) the rev are taking 800 out of pay packet because they've changed the rules about NI and its year end.

Need a solution, thanks.

Or is that unreasonable and I need to suck this up?

[happyscouse]

You get taxed on your income exactly the same as everyone else. Earnings(this includes any bonus) less personal tax allowance currently 10000 per annum equals taxable income which is then taxed at 20% -40% depending on amount earned. Being a director makes no difference to you.

[JemimaPuddlePop]

What the pp said. You pay income tax within the same rate bands as everyone else, whether you're a shop assistant or a Director of a multi-national.

[SophieandHerSnail]

Can you explain why you think your job title makes a difference to your tax?

[Clayhead]

But NI payments can be different for directors, you can pay annually instead of monthly I think - is that what you mean?

I think you pay the same amount but at a different time.

[PervyMuskrat]

Suck it up. Rules for directors' NI are different to those for standard employees. As far as I'm aware though, HMRC haven't changed the rules on this since 1999.

[cookiemonster100]

It should be the same regardless of title. Check if your deductions are the same per month or different. If they are different you maybe on a cumulative deductions basis whereby they are higher in some months vs others. Speak to your payroll dept.

[Theoretician]

Can you explain why you think your job title makes a difference to your tax?

As people have said, directors NI pay period is annual rather than monthly or weekly. However this is a good thing, if it makes any difference it will lower the amount you pay.

[woowoo22]

There's a difference between being a company director and just having "director" in your title. Which are you?

[listlessinlondon]

Director in title only. I get less than several managers!

Apparently ni rules have changed this year

[Iggly]

Who told you they have?

I think they might be for pensions - the contracted out lower rate is going I think? But don't quote me on that.

[Collaborate]

This link explains how you're assessed for NI.

www.gov.uk/employee-directors

It means that rather than work out your NI every week, it's worked out on an annual basis. The reason for this is that directors were able to pay themselves just below the NI threshold every week, then get a large bonus at the end of the year. As NI is only worked out on a weekly basis that would substantially reduce their NI bill.

YABVU to think you're being unfairly treated. Presumably you've been underpaying during the year, or you've received an end of year bonus. You'll have to negotiate a higher bonus if you think it's unfair.

[woowoo22]

She's not an actual director though??? There are loads of "directors" at my company but only 4 where the NI/bonus rules would apply.

[Trufflethewuffle]

You need to find out if you are a director registered with companies house. If not, you should get your job title changed as if you are termed a director anyone you deal with is entitled to believe you act as a director and have the responsibilities that go with it. Did you sign a form to be appointed as a director?

[GrandadGrumps]

There's no such thing as being "a company director but only in name". You're either a director or your not - and having shares (or not) is irrelevant to your status as director.

The NI rules haven't 'changed'. As a director you have the option to pay NI on the same basis as other employees, spread out over the year, or to pay it on a cumulative basis so you only pay anything once your earnings for the year have gone over the £7956 threshold.