NI contributions for Company Directors?

Question

Do they have to pay the full amount or are there any breaks that they come under?

Answer 1

Company directors pay the same national insurance on their salaries as any other employee.

The only special rules are that the figures are calculated on an annual basis to prevent artificial manipulation of the contributions due.

Answer 2

It depends on how you pay yourself.

If you as a director of a company pay yourself a salary and you draw a wage from the company then tax and ni contributions are taken from your wages just like any other employee of that company. You can then offset these payments when you submit your self-assessment tax return.

If you do not draw a wage from the company but take dividends then these also have to be declared on your self assessment tax return and tax and NI contributions are calculated from that. The rates and allowances for that are geared to be the same or nearly the same as everyone else.

Being a company director does not give you special rates and allowances. However, it gives you different times as to when you pay under self assessment rules.

Answer 3

Depends on whether they're self-employed and many other things