What is Optimum Director’s Salary 2025/26
The 2025/26 tax year is set to bring a mix of challenges and opportunities for company directors, especially in light of the October 2024 Budget update. With the Employer’s National Insurance (NI) threshold taking a significant dip, many directors are left pondering: What is the optimum directors salary 2025/26 ? In this article, we’ll dive into the key changes, tax thresholds, and salary strategies that can help you keep more of your hard-earned cash while ensuring you stay compliant. What’s New in the 2025/26 Tax Year? One of the biggest changes for directors is the reduction of the Employer’s NI threshold from £9,100 to £5,000. Starting in April 2025, companies will be required to pay 15% NI on any salaries exceeding £5,000, unless they qualify for the Employment Allowance. This shift will influence how directors decide to structure their pay — particularly for those who lean towards a low-salary, high-dividend approach to minimize tax. Therefore, determining...