This form is used as a way for you to inform us of the gross salary and dividends you plan on taking out of your company account during the 2024/25 tax year. Please complete the form by selecting your objective and then letting us know if you would like us to process a set salary and/or dividends for you. While we have included some potential objectives and corresponding salary and dividend amounts each individual will have unique circumstances and therefore we cannot accurately advise a suitable tax plan for everyone. The examples provided are based on a sole director and shareholder with no other sources of income and are for your guidance only. As a director of your limited company you can choose to distribute whatever amounts you wish. If you have other sources of income or would simply like to speak to a member of our Personal Tax team regarding the most tax efficient amounts for you to withdraw from your business account, you can call them on 0808 231 7795 or email us at services@bluebirdaccountancy.co.uk. Name* First Name Last Name Company Name*Please select your objective*Employers NI ThresholdEmployees NI ThresholdNational Minimum WagePersonal Allowance ThresholdBasic Rate Tax ThresholdHigher Rate Tax ThresholdOver State Retirement AgeNo SalaryOther Objective: Tax Efficient - Employers NI Threshold The Employers National Insurance Threshold for the 2024/25 tax year is £9,100. If you were to have no other income in the tax year, paying yourself salary at below this level would mean that you would not pay PAYE or NI on your salary. Paying yourself dividends at the below amount would take you up to the Basic Rate Tax Threshold which is £50,270 meaning you would not pay any dividend tax at the higher rate of 33.75% (assuming you have no other income). Gross Set Salary: £9,100 per annum Gross Dividend: £41,170 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £3,255.00* in Dividend Tax to pay for the sole director and shareholder. Having a Salary at the Employers NI Threshold will mean you will not be paying PAYE tax or NI at source. *This assumes you have no other taxable income in the year. Objective: Employees NI Threshold The Employees National Insurance Threshold for the 2024/25 tax year is £12,570. If you were to have no other income in the tax year, paying yourself salary at this level would mean that you would not pay PAYE or Employees NI on your salary. Paying yourself dividends at the below amount would take you up to the Basic Rate Tax Threshold which is £50,270 meaning you would not pay any dividend tax at the higher rate of 33.75% (assuming you have no other income). Gross Set Salary: £12,570 per annum Gross Dividend: £37,700 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £3,255.00* in Dividend Tax to pay for the sole director and shareholder. Having a Salary at the Employees NI Threshold will mean you will not be paying PAYE tax or Employees NI at source. However, your company would pay Employers NI of £478.86. *This assumes you have no other taxable income in the year. Objective: National Minimum Wage The National Minimum Wage for the 2024/25 tax year for people over 21 (National Living Wage) is £11.44. For a contractor working 37.5 hours a week and 46 weeks a year we estimate this to be around £19,734.00 a year. Paying yourself dividends at the below amount would take you up to the Basic Rate Tax Threshold which is £50,270 meaning you would not pay any dividend tax at the higher rate of 33.75% (assuming you have no other income). Gross Set Salary: £19,734.00 per annum Gross Dividend: £30,536.00 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £2,628.15* in Dividend Tax to pay for the sole director and shareholder. Having a salary at the National Minimum Wage will mean you will also be paying PAYE tax and Employees NI at source via your payroll of £2,005.92, this will give you a personal and dividend tax liability totalling £4,634.07. Your company would also pay Employers NI of £1,467.49. *This assumes you have no other taxable income in the year. Objective: Personal Allowance Threshold The Personal Allowance for the 2024/25 tax year is £12,570. If you were to have no other income in the tax year, paying yourself salary at this level would mean that you would not pay PAYE on your salary. Paying yourself dividends at the below amount would take you up to the Basic Rate Tax Threshold which is £50,270 meaning you would not pay any dividend tax at the higher rate of 33.75% (assuming you have no other income). Gross Set Salary: £12,570 per annum Gross Dividend: £37,700 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £3,255.00* in Dividend Tax to pay for the sole director and shareholder. Having a Salary at the Personal Allowance Threshold will mean you will not be paying PAYE tax or Employees NI at source. However, your company would pay Employers NI of £478.86. *This assumes you have no other taxable income in the year. Objective: Basic Rate Tax Threshold The Basic Rate Tax Threshold (including Personal Allowance) for the 2024/25 tax year is £50,270. If you were to have no other income in the tax year, paying yourself salary at this level would mean you do not pay PAYE at the higher rate (40%) on your salary. The tax free dividend allowance for the 2024/25 tax year is £500 and therefore paying yourself the below dividends ensures you do not pay dividend tax at the basic rate of 8.75% (assuming you have no other income). Gross Set Salary: £50,270 per annum Gross Dividend: £500 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £0.00* in Dividend Tax to pay for the sole director and shareholder. Having a salary to the Basic Rate Tax threshold will mean you will be paying PAYE tax and Employees NI at source via your payroll of £10,556. Your company would also pay Employers NI of £5,681.46. *This assumes you have no other taxable income in the year. Objective: Higher Rate Tax Threshold The Higher Rate Tax Threshold for the 2024/25 tax year is £125,140. If you were to have no other income in the tax year, paying yourself salary at this level would mean that you would not pay PAYE at the additional rate (45%) on your salary. The tax free dividend allowance for the 2024/25 tax year is £500 and therefore paying yourself the below dividends ensures you do not pay dividend tax at the basic rate of 8.75% (assuming you have no other income). Gross Set Salary: £125,140 per annum Gross Dividend: £500 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £0.00* in Dividend Tax to pay for the sole director and shareholder. Having a salary to the Higher Rate Tax threshold will mean you will be paying PAYE tax and Employees NI at source via your payroll of £47,028.92. Your company would also pay Employers NI of £16,014.07. *This assumes you have no other taxable income in the year. Objective: Over State Retirement Age If you are over state retirement age then you will not pay National Insurance as an employee (unless you're self-employed and paying Class 4 contributions). The Personal Allowance for the 2024/25 tax year is £12,570 and if you were to have no other income in the tax year, paying yourself salary at this level would mean that you would not pay PAYE on your salary. Paying yourself dividends at the below amount would take you up to the Basic Rate Tax Threshold which is £50,270 meaning you would not pay and dividend tax at the higher rate of 33.75% (assuming you have no other income). Gross Set Salary: £12,570 per annum Gross Dividend: £37,700 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £3,255.00* in Dividend Tax to pay for the sole director and shareholder. Having a salary at the Personal Allowance threshold will mean you will not be paying PAYE or Employees NI at source via your payroll. Your company would also pay Employers NI of £478.86. *This assumes you have no other taxable income in the year. Objective: No Salary If you take no salary and have no other income during the tax year you would not pay PAYE or National Insurance on your salary. Paying yourself dividends at the below amount would take you up to the Basic Rate Tax Threshold which is £50,270 meaning you would not pay any dividend tax at the higher rate of 33.75% (assuming you have no other income). No Salary Gross Dividend: £50,270 per annum It has been estimated that if the above calculations are followed for the 2024/25 tax year, there will be a liability of £3,255.00* in Dividend Tax to pay for the sole director and shareholder. *This assumes you have no other taxable income in the year. Would you like to operate a set salary?* Yes No Tax Thresholds and Rates for 2024/25 Employers National Insurance Threshold:£9,100 Employees National Insurance Threshold:£12,570 Personal Allowance: £12,570 Basic Rate Tax Threshold: £50,270 Higher Rate Tax Threshold: £125,140 Personal Allowance Earnings Threshold: £100,000 (your Personal Allowance goes down by £1 for every £2 you are above this) National Minimum wage for over 23's: £11.44 per hourPlanned Gross Salary Amount*Enter the maximum amount you plan to take out of your business account as salary.Per*AnnumMonthPlanned Dividend AmountEnter the maximum amount you plan to take out of your business account as dividends. If you wish to take maximum dividends, please remove any figure from this field. Please note that you are responsible for ensuring you do not exceed your planned dividend withdrawals throughout the tax year.PerAnnumMonth Δ
