This Content Was Last Updated on February 9, 2017 by Jessica Garbett


Employment Allowance is a new tax break to small businesses and has been in the media recently – we’ve produced a guide, including its impact on salary levels for directors of small companies and the salary / dividend mix.

Our conclusion is that it changes the optimum salary for tax / NI purposes, but not our recommended salary levels – the differences are only a few hundred pound, and not the headline £2,000.

For most of our clients no action is needed, we will claim as appropriate and there is no change to recommended salary levels, however if you would like to learn some more, the guide is here