![]() ![]() That is unless you have a contract of employment with your UK company. There is no minimum wage requirement when it comes to your limited company director salary. What to consider for your limited company contractor salary How much should I pay myself as a director? Therefore, there should be enough remaining to pay you your chosen contractor monthly salary after working this out. Basically, your company profits are calculated by deducting all business expenses from the company income. When you consider can I pay myself as a contractor from my own company, the salary cost will be paid out of your company profits. As a result, this will help save company tax and also give your spouse a wage.įurthermore, depending on what your spouse earns, it may also be an idea to consider using the transfer of the UK Marriage Allowance. You can do this if they do some work for your contractor limited company. Any salaries that your company pays are included as an expense when working out the company profit.īesides your own contractor take-home salary, if you are married or have a partner, you might consider paying your spouse a salary. The other main tax for your company is Corporation Tax and this is payable on company profits which are generated from your contract income. As a result, many UK contractors will choose to take a contractor tax-efficient salary. How much do you get taxed as a contractor? Notably, your chosen level of limited company salary will determine how much PAYE and National Insurance your company pays to HMRC. Initial thoughts What to consider first regarding your independent contractor salary Therefore, you can consider what is best for you in terms of a contractor tax-efficient salary and ask your accountant to process this for you going forward. The subject of how to get paid as a contractor, in terms of contracting pay and dividends, this is one of the most common things a UK contractor needs to consider when running their own company. Indeed, you could take a low salary, a middle-level salary, or even a high-level salary, and the choice is yours. ![]() Furthermore, the salary of a contractor can also depend on other factors. Therefore, many UK limited company contractors and independent consultants who work in the IT field (and other industries) will need to decide on the level of IT contractor salary that their company pays them as part of their overall contractor take-home pay. ![]() As a result, this will help you maximise your contractor take-home pay. When deciding on how to pay yourself as a contractor, a director’s tax-efficient salary is something to consider as part of your overall tax planning. Therefore, let us now investigate how to pay yourself as an independent contractor. Overall, maximising your overall UK contractor take-home pay is key, however taking a contractor tax-efficient salary in terms of PAYE is also a key consideration. This is not the case when you work through an umbrella company or are employed full-time. What level of contractor salary (UK) should you take when you run your own limited company in the United Kingdom? It is important to note that when you are in business for yourself, you can decide on your level of director salary from your contractor earnings. ![]()
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