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Paying self in dividends and maternity allowance

2 replies

TremoloGreen · 16/06/2014 21:01

I'm a freelancer working as a sole trader at the moment but thinking it would be more tax efficient to set up a limited company and pay myself a small salary and the rest in dividends. The thing is, I want to make sure I have made enough National Insurance contributions if I want to claim maternity allowance at any time. Can someone tell me the minimum amount I need to pay myself as a salary to ensure this?

OP posts:
EssCee · 07/07/2014 21:15

I pay myself the min salary and draw dividends (or SMP when I was pregnant). The monthly salary is £833.33.

Good idea to speak to your accountant though.

utopian99 · 27/07/2014 18:48

Ditto situation but I pay myself £485/month. No NI paid but you fit into a loophole in qualification. HMRC confirmed a couple of weeks ago this is enough for lowest rate smp - our dc2 is due in November.

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