8 April 2022

Tax Efficient Salaries 22/23

You may well have noticed in the national news the starting rate at which employee NI is payable has increased quite significantly and so in some cases the monthly salaries we recommend this year are higher.


The salaries we recommend and the amounts payable to HMRC are:

Sole Company Director (No other directors or employees) £992.33 monthly
PAYE payment to HMRC in April 2023 £422.60

Company Director or Spouse/Partner (minimum 2 directors/employees) £823 to June 22 then £1,048 per month
Payable to HMRC - nil

Company Director or Spouse/Partner with other income (minimum 2 directors/employees) 658.40 to June 22 then £838.40 per month
PAYE payable July 22 £493.80 then £628.80 for the remaining three quarters

These salaries are set at levels that achieve state pension entitlement, even where no PAYE is due.

NI rate change in July 22 – The increase in the point at which NI is charged only applies with effect from July 22 therefore the optimal salary will differ pre and post July!

In certain circumstances it may be advisable to pay in excess of these recommended salaries, If this is the case we will notify you separately.