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Where Taxpayers and Advisers Meet

TAX and National Insurance for Company Director

doggax
Posts:4
Joined:Sat Apr 08, 2017 2:30 pm
TAX and National Insurance for Company Director

Postby doggax » Sun Apr 09, 2017 12:24 pm

Hello all,

I’ve just started up own Limited Company and I’m trying to work out how TAX and National Insurance works for myself as a Company Director. I think I have figured it out but I was just wondering if I have figured it out correctly or do I need to take National Insurance of before TAX or TAX of before National Insurance?
Below is how I have worked it out based on being paid £1500 a year:
£1500 – 9% (Class 4 NIC) = £615.24
£1500 – 20% (Income Tax) = £700
Plus £2.80 per week (Class 2 NIC) = £148.20
Total: £1463.44 (Due to HMRC)

Does this look correct or have I worked it out wrong?

Thanks
James

doggax
Posts:4
Joined:Sat Apr 08, 2017 2:30 pm

Re: TAX and National Insurance for Company Director

Postby doggax » Sun Apr 09, 2017 2:08 pm

Sorry I meant if I was to be paid £15,000

doggax
Posts:4
Joined:Sat Apr 08, 2017 2:30 pm

Re: TAX and National Insurance for Company Director

Postby doggax » Sun Apr 09, 2017 2:09 pm

Try again

Below is how I have worked it out based on being paid £15,000 a year:
£15,000 – 9% (Class 4 NIC) = £615.24
£15,000 – 20% (Income Tax) = £700
Plus £2.80 per week (Class 2 NIC) = £148.20
Total: £1463.44 (Due to HMRC)

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: TAX and National Insurance for Company Director

Postby bd6759 » Sun Apr 09, 2017 2:34 pm

You do not pay class 2 or class 4 NIc. You are an employee and will pay class 1.

The employee rate of NIC is 12% on anything more than £680 per month

Your company will pay employer's NIC at 13.8% on the same amount.


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