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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My wife and I are registered as directors of our own small

Resolved Question:

My wife and I are registered as directors of our own small company but receive no salary, benefits or other payments as directors. We are both paid a monthly salary as employees of the company.

Would we therefore be liable for paying additional NI contributions over and above those we pay each month as employees?

Regards
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Apart from there being different methods of the way NIC is calculated for directors and paid through the payroll, you will pay the same amount whether you are an employee or a director over a tax year. You would not set up a different payroll to pay yourselves as directors at the same time as running a payroll with yourselves as employees. The relevant box in your payroll software should be selected to tell it whether you are an employee or a director.

Take a look at the HMRC booklet CA44(2013) here for information on directors' NIC.

I hope this helps but let me know if you have any further questions.
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