The state pension was introduced in 1948. This is important as it is the earliest date you can claim your state pension and it depends on your date of birth.
Once you attain state pension age you no longer need to pay national insurance on salary. This raises an important question, is it more tax advantageous to draw down more money in salary as opposed to dividends?
Dividends aren’t ever subject to NI and once an individual attains state pension age then the difference between dividends and salary is nil when considering NI (the limited company will still be liable to pay employers NI however).
By increasing the salary drawn there is the added advantage of saving more corporation tax as dividends are drawn from post-tax profits and thus attract no corporation tax relief.
The results vary dependent on the total income in question. Contact us if the above situation applies to you and we’d be happy to advise.
You can check your state pension age HERE.