Director Salary

the director’s gross salary (net salary plus employee national insurance and employer national insurance) is a deductible business expense. You pay Income Tax on your earnings in the same way as other employees. However, your National Insurance contributions are worked out over an ‘annual earnings period’; from 6 April to the following 5 April ; rather than over the normal weekly or monthly periods that apply to other employees. This is to make sure you pay the right amount of National Insurance contributions.