To determine the overall saving of tax and NIC for the year ended 5 April 2025, we need to calculate the taxes and NICs under two scenarios: (1) when Joe withdraws all profits as director's remuneration and (2) when Joe pays himself a lower salary and takes dividends.

Scenario 1: Director's Remuneration Only - Taxable profits before director's remuneration: 65,000 - Employer's NIC: 6,779 (not reduced by employment allowance) - Joe's gross director's remuneration: 58,221

Scenario 2: Lower Director's Remuneration and Dividends - Gross director's remuneration: 8,000 - Dividends: 45,645

First, let's calculate the corporation tax for both scenarios. Since the rate of corporation tax remains unchanged, we'll use the applicable rate for the given period.

Assuming the corporation tax rate is 19%, the calculations are as follows:

Scenario 1 Corporation Tax: (65,000 - 58,221) * 19% = (6,779) * 19% = 1,288.01

Scenario 2 Corporation Tax: (65,000 - 8,000) * 19% = (57,000) * 19% = 10,830

Now, let's calculate the income tax and NICs for Joe under both scenarios:

Scenario 1 Income Tax and NICs: - Joe's net salary after employer's NIC: 58,221 - 6,779 = 51,442 - Income tax on 51,442 (assuming higher rate tax threshold): 40% (rate may vary, please use the correct rate for the specific tax year) - Income tax: 51,442 * 40% = 20,576.80 - Joe's Class 1 NIC (assuming higher rate threshold): 51,442 * 12% = 6,173.04 - Total tax and NIC for Joe: 20,576.80 (income tax) + 6,173.04 (NIC) = 26,749.84

Scenario 2 Income Tax and NICs: - Joe's net salary after employer's NIC: 8,000 - (8,000 * 13.8%) = 6,896 (using the primary threshold for NICs) - Income tax on 6,896: 20% (assuming basic rate tax threshold) - Income tax: 6,896 * 20% = 1,379.20 - No additional Class 1 NIC for Joe since salary is below the primary threshold - Dividend tax on 45,645 (assuming dividend ordinary rate of 7.5%): 45,645 * 7.5% = 3,423.38 - Total tax and NIC for Joe: 1,379.20 (income tax) + 0 (NIC) + 3,423.38 (dividend tax) = 4,792.58

Finally, let's calculate the overall saving:

Original Scenario Total (tax and NIC): 26,749.84 (corporation tax) + 26,749.84 (Joe's tax and NIC) = 53,499.68 Alternative Scenario Total (tax and NIC): 10,830 (corporation tax) + 4,792.58 (Joe's tax and NIC) = 15,622.58

Overall Saving: 53,499.68 - 15,622.58 = 37,877.10

So, there would be an overall saving of tax and NIC for the year ended 5 April 2025 if Joe had instead paid himself gross director's remuneration of 8,000 and dividends of 45,645, amounting to 37,877.10.