Many clients are set up to pay the minimum tax and National Insurance, by paying a low wage and a monthly dividend. Whilst this is the most tax efficient way to pay yourself, if this is continued for many years there is a possibility you will under pay National Insurance and possibly not receive a full pension. If this is the case you can voluntarily top up your National Insurance contributions. Please check your NI contributions are ok by visiting www.gov.uk/check-national-insurance-record.
The latest news from PMC Partnership incorporating Pomfreys Accountants – 27th March 2025
Remember from 6th April the minimum wage for over 21 year old employees raises to £12.21 per hour, aged 18-20 £10.00 with 16-17 year olds and apprentice rates increasing to £7.55 per hour.