Directors Fees

How does is National Insurance affected if I set a Directors Fee lower than the recommendation?
If you set a Directors Fee below £120 per week and do not have any other income subject to National Insurance, this may affect your eligibility for future benefits.
What director’s fees do you recommend as a director with additional employees if I am outside IR35?
It is recommended that the Directors Fee is set at the 2020/21 Personal Tax threshold of £12,500. This equates to £240 per week or £1,042 per month.
What director’s fees do you recommend as a sole director if I am outside IR35?
It is recommended that the Directors Fee is to be set at the 2020/21 annual Employers NI threshold of £8,788 for sole directors. This equates to £169 per week or £732 per month.
What are the thresholds for the 2020/2021 Financial Year for Directors Fees?
If you are a sole director, we recommend that your Directors Fee is set at the 2020/21 annual Employers NI threshold of £8,788 p.a. which equates to £732 a month / £169 a week.
Do I need a director’s fee in my company if I am captured by IR35?
No - as you can potentially utilise your personal allowance to offset against income taxed at source when paid by your agency into your company.
Do I need a director’s fee in my company if my company is dormant whilst I work through an umbrella company?
No - as you can potentially utilise your personal allowance to offset against income taxed at source by the umbrella company paying you.

Need Support?

Can't find the answer you're looking for? Don't worry we're here to help!