2024/25 salaries

2024/25 salaries

Updated 08/04/2024

Salary rollover to 2024/25
With the new tax year approaching and adjustments to the NI threshold taking effect on April 6, 2024, here are our recommendations for monthly gross pay for Directors and their relevant spouses/partners:

a) Current gross pay of £758 or £760 per month will change to £758.34. This adjustment is expected to result in no employee or employer NI contributions or tax, pending coding notices.

b) Current gross pay of £1,030 per month will increase to £1,047.50 per month.

For most Limited company owner-managers, the higher salary option is suitable. We suggest raising it to £1,047.50 to utilize the standard Personal Allowance effectively, especially now that the employee NIC thresholds align with the standard Personal Allowance.

The recommended salary levels depend on whether your company qualifies for the employment allowance, which covers employer NI contributions up to £5,000 for the 2024/25 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 2024, or if we applied a 'top-up' salary in 2023/24, 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 2023/24 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. 



    • Related Articles

    • Remuneration of wages and pensions to family members

      Remuneration of wages and pensions to family members Paying salaries and pension contributions to spouses or close relatives in a business can be legitimate, but this is a grey area and has historically been of interest to HMRC. If one spouse is the ...

    • Companies with non-director employees on the payroll

      If you have employees (including spouses) on the company payroll, you are affected by the workplace pension enrolment legislation. Your key contact for the Pensions Regulator should be yourself as Director of your limited company. You can contact the ...

    • Limited Company vs Sole Trader or Partnership vs Limited Liability Partnership

      COMPARISON OF LIMITED COMPANY, SOLE TRADER OR PARTNERSHIP AND LIMITED LIABILITY PARTNERSHIP Limited Company Sole Trader / Partnerships Limited Liability Partnerships A limited company is a separate legal entity. No distinction between you and your ...

    • Company pensions

      It is sometimes tax efficient for a profit-making company to set up director pension payments. They can be a valuable tax-saving mechanism, particularly for companies with profits over £50,000, which will be subject to the higher 25% corporation tax ...