The amount you choose to pay the company directors, including gross salary or bonuses. Find out more about the best way to understand the most tax-effective way to pay the directors in salaries through the payroll section.

What's included

  • The net amount paid in employee wages.

  • Director wages.

  • Bonuses.

What's not included

  • Amounts paid to subcontractors.

  • PAYE and National Insurance.

How is it taxed?

When paying salaries and wages you have to consider they may be subject to the following government payments:

  • Employer National Insurance

  • Employee National Insurance

  • Pay as you Earn (PAYE)

  • Student loan

  • Auto enrolled pension

These are all explained in the relevant Ember category descriptions if you want to learn more.

Tax tips

All salary, pension, bonus and NIC payments must be made within 9 months of your year-end to qualify for tax relief. Where they are not, then the deduction can only be taken when they are paid.

Note: if you use Ember for payroll, then your net pay to directors will be automatically posted for you to director's salaries and wages.

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