The optimum salary for a contractor to pay themselves in the current tax year is dependent on their overall income throughout the period.
In the instance there is no other income to be considered, it is generally recommended that salary is paid in line with the Secondary National Insurance threshold which is currently £758 per month (22/23).
<p>The optimum salary for a contractor to pay themselves in the current tax year is dependent on their overall income throughout the period.</p><p>In the instance there is no other income to be considered, it is generally recommended that salary is paid in line with the Secondary National Insurance threshold which is currently <strong>£732 per month</strong> (20/21).</p>
Our small business accounting guide walks through absolutely everything you need to know if you're considering starting a limited company. From different taxes, limited company advantages/ disadvantages, how to pay yourself, and what your key filing requirements are.
- When to register a Ltd company
- When to register for VAT
- How to take money out of your company
- Dividend tax rates
- Limited company expenses & corporation tax
- Annual accounts and deadlines
Read more of our Small Business Accounting guides:
Book a free consultation to learn more about your optimal company director salary.
We help you understand how to actually pay yourself as a limited company director or sole trader. This guide helps explain the different tax rates, filing requirements and which company structure is best for you.
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