I have a small company I plan to resurrect in the NY- I have been living overseas and had dc, but will be returning and the dc are now at school.
Historically I didn't pay myself a salary as there wasn't any money to start with. Now, there is a couple of thousand in the account, and as I will working on the company during school hours.
I want to pay myself a salary, so should this be my personal allowance or minimum wage? I don't plan claim any benefits or tax credits except child benefit. I need to be sure I am contributing to my pension through paye/ NICS, but keep costs down whilst I get the company going again.
I am by no means an expert, but I think you can pay yourself the minimum salary, which is in the region of 7000 per year so you con contribute to tax and NI. Based on your profit, you can draw directors dividends to top up your salary. It would be worth speaking to an accountant to clarify.
Presuming you definitely have a limited company and are not just referring to your business as a 'company' then £641 per month is the 'optimum' salary for directors for NIC purposes this year. You would need to pay through a registered PAYE scheme.
Most directors are not governed by national minimum wage legislation as they are office holders and not employees (for employment law legislation although are employees for tax purposes). This is the case unless you have a contract of employment obviously.
Definitely worth seeking advice from a qualified accountant.
Thank you! I am quite comfortable doing my own returns - would an accountant just give me the advice or want to get involved in it all? It is a limited company. Its very small though and just me, and I have a finance background.