Tax rates and allowances are increasing from 6 April 2022, and the optimum salary levels for saving tax while still maintaining entitlement to state pension and other benefits are increasing with them.
If most of your income comes from your limited company, and you have no other sources of income such as rental properties or benefits in kind, then the optimum salary will increase to £758.33 per month, or weekly equivalent. Clients whose payroll we process will automatically benefit from the new rates however if you process your own payroll or have a bookkeeper who does, you should be aware of this and increase as appropriate.
If you have other sources of income in addition to salary and dividends from your company, then under certain circumstances a different level of salary may be more appropriate. If this is the case, please contact your client manager to discuss your personal circumstances in more detail so they can identify the salary level most appropriate for you.
In particular, if your monthly salary (or equivalent) is currently £520, you will need to review this or risk missing out on state pension credits.