As the director of a limited company, you can pay yourself a wage and still qualify in later life for the state pension.
If you pay yourself a salary that doesn’t generate any tax, you can take a regular wage out of the business (without making any PAYE and NI contributions) and still be part of the state pension system.
The cut-off is approximately £8,000 per year, and you can then take any additional earnings above this £8k figure as dividend payments out the business’s end profit.
It’s possible that you won’t pay National Insurance contributions because you’re earning less than £155 a week. You may still get a qualifying year if you earn between £112 and £155 a week from one employer – find out more about the rules for this on the HMRC site
If you want to know more about future wealth planning and directors’ pensions, give us a call on 01454 300 999 or drop an email to email@example.com