Payroll and salary end of tax year tax planning for directors and their own companies
March 2017 will be the last payroll run of the 2016-17 tax year. It is therefore not too late to do some year tax planning. Directors, unlike other employees, have an annual earning period for salary calculations. It is therefore possible to do a salary adjustment in March 2017 and effectively spread any year-end salary adjustment throughout the tax year for the purposes of working out any tax and National Insurance due. Tax efficient gross pay levels If a company pay its di