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Director's Salary

As a taxpayer you have a personal allowance. This is money you can earn each year without paying any tax.

In the current tax year the personal tax-free allowance and the National Insurance free allowance differ. The most tax efficient salary to take is anything up to the National Insurance free allowance.

By drawing a salary up to this amount you will not pay any tax or National Insurance on this proportion of your income.

You can take this allowance through your company’s PAYE scheme as a Director’s Salary.

Last Updated: 08 Jul 2015 05:13PM BST
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