In that case why do you go through the artificial system of having your pay via a company and not simply become a direct employee. I was always under the impression that people gained tax / nic advantages being paid this way.
In my case, I have to run a VAT-registered company as that's what my clients require, and I'm an employee of it. It used to be the case that one could minimise one's PAYE income and take dividends from the company to reduce total tax, but in the last couple of years HMRC have closed that loophole.
I pay both Employer's and Employee's NIC, I pay PAYE Income tax, 20% Corporation tax on the profits and 35 % or so on dividends.
If one doesn't take money out of the company in dividend or salary, it can remain in the company account until you close it down, then you are entitled to claim entrepreneur's relief on the Capital Gain and pay 10% tax rather than full CGT. This last is about the only real advantage of being self-employed these days.
