Can I pay myself the personal allowance all in one go?

Question

I own a limited company, I want to minimise the tax and NIC I pay. To do this I will pay myself the the tax free personal allowance as a salary, then take the rest as dividend payments.

My question is can I pay myself the personal allowance as a one off salary payment and then pay myself nothing else for the rest of the year? If I do this will I have to pay tax on that amount as it is over the weekly/monthly threshold, then have to claim it back at the end of the year?

Thanks in advance

Answer 1

Yes, you can pay yourself £5435 in one month but the tax tables will only give you one twelth of your personal allowances and you would then get refunds of tax each month after that. NIC would be chargeable on the whole 5435 but NICs are not calculated cumulatively so you would be stuck with a big NIC charge which would not be refundable. .

Answer 2

If you wait until the end of the tax year, you will get your full p.a. and won't have to claim a refund. And you can use the annual NIC adjustment so you pay the correct NICs.