How much should I pay myself?

(6 Posts)
rightsaidfred Thu 06-Feb-14 22:13:02

I have a limited company and have never paid myself. Historically this was because I was working part time elsewhere and thought it was too complicated/ didn't want to tell work.......I have been working only in my own business for at least 2 years now. (no other income)
I have just taken on a member of staff and registered as an employer with HMRC and would like to start paying myself too.

Is there an optimal amount I should be paying myself? Can I just start paying myself or do I need some kind of contract etc?

Also - have just found out I am pregnant and wondering about MA and whether I should bother claiming as I am unlikely to be able to take much time off- so any advice there welcome too. Thank you

Hoppinggreen Fri 07-Feb-14 11:07:58

Make sure you pay yourself enough salary to cover your NI contributions.
My accountant sorts this out but I get around £600 in salary and then pay myself dividends of whatever I decide.

TalkinPeace Fri 07-Feb-14 13:55:12

the optimum is £1 less than ni kicks in ....

talk to your accountant
as you will need an accountant to file the ixbrl accounts

MadamNoo Fri 07-Feb-14 14:00:09

I looked into this recently and the 'magic number' for what they call a director's minimum salary is £641, which qualifies for the pension but doesn't trigger tax or NI. Rest as a dividend.

rightsaidfred Fri 07-Feb-14 14:27:38

Thanks for the replies..... Yes I have an accountant but don't find them especially helpful. (My husband has used them for years but his guy just retired and I think we will need to switch as it is impossible to get an answer on anything..... the logistics of changing are a nightmare. There always seems to be a deadline looming!)
If I was planning on trying to claim maternity pay (is it SMP rather than MA if I pay myself as an employee of the company?) then do I need to be paying national insurance to qualify? (Only 7 weeks pregnant at the moment so think there is time)
I have been wading through the HMRC advice which only seems to have confused me more

LadyMud Fri 07-Feb-14 18:30:50

First of all, congratulations on your pregnancy!

Without knowing the various dates involved, you may not be eligible for SMP through the company. However, you may be able to claim MA instead.

You really need to find a new accountant, someone who will help you with these practical matters (eg running your monthly payroll).

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