Director and owner of a business with an annual gross salary of 10,600 GBP for tax year 2015/16.
Directors are classed as employees and pay National Insurance on annual income from salary and bonuses over £8,060.
Both company AND employee pay NI contributions.Thus, in some circumstances it is more tax efficient to set salary at £8,060 and the rest pay via dividends or consider pension contributions.
Here is a calculator: http://nicdcalculator.hmrc.gov.uk/DirectorsClass1NICs1.aspx
This calculator looks purely at national insurance contributions. It does not take into account pension payments or salary sacrifice schemes, student loans, or any benefits.
If this company allowed to receive "Employment allowance", then instead of £648 it will be payable £333. In other words, if eligible for employment allowance, it is more efficient to set salary at 10,600 (=Personal Allowance) level.
References:
https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions
https://www.gov.uk/income-tax-rates/current-rates-and-allowances
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/409105/Tax_Tables_B-D.pdf
https://www.gov.uk/employment-allowance
