Directors Fees

Your Director’s Salary 24/25 – Everything you need to know
Everything you need to know about your directors salary for 2024/2025.
Can I appoint a second shareholder?
Adding a second shareholder is straightforward, but may create issues you should be aware of. If the procedure is not carried out correctly, HMRC may deem the appointment of a second shareholder as ‘income shifting’. This means transferring some of the taxable profits you have made to another individual with less tax liability, thereby reducing your own tax liability.
How is my National Insurance affected if I set a Directors Fee lower than the recommendation?
If you set a director’s fee below £123 per week for 2024/25 and do not have any other income subject to National Insurance, this may affect your eligibility for future benefits.
Do I need a director’s fee in my company if my company is dormant whilst I work through an umbrella company?
No - as you can potentially utilise your personal allowance to offset against income taxed at source by the umbrella company paying you.
Do I need a director’s fee in my company if I am captured by IR35?
No - as you can potentially utilise your personal allowance to offset against income taxed at source when paid by your agency into your company.

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