2025/26 salaries

2025/26 salaries

Updated 14/05/2025

Salary rollover to 2025/26

With the new tax year approaching and adjustments to the employer’s NI threshold taking effect on April 6, 2025, here are our recommendations for monthly gross pay for Directors and their relevant spouses/partners:

a)      Current gross pay of £758.34 per month will change to £541.67. This adjustment is expected to result in no employee NI contributions or tax expected, pending tax code notices. A salary at this level would still count as a qualifying year towards the state pension.

b)     Current gross pay of £1,047.50 per month will have no change to the salary for 2025/26.

The higher of these salaries is suitable for most limited company directors and fully utilises the tax free Personal Allowance and Employee National Insurance thresholds, making it more tax efficient.

The recommended salary levels depend on whether your company qualifies for the employment allowance, which covers employer NI contributions up to £10,500 for the 2025/26 tax year. We will determine and implement the most tax-efficient setup for your company, including applying for employment allowance if your company qualifies. Companies with only one employee will not receive the employer NIC relief, but it often remains tax efficient nonetheless.

If we are setting up your salary on the company payroll for the first time starting April 2025, or if we applied a 'top-up' salary in 2024/25, we will apply the most tax-efficient salary for your company. However, we won't alter director/spouse salaries if a different arrangement was requested in 2024/25 or for any other employees.

Therefore, if you require any changes, please let us know. Please note that April payslips may not be available as early in the month as usual due to the rollover process taking time to complete for all our clients. 

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