Limited company shareholders - income shifting??

[LLP76]

That would be my impression as well - if you were ever likely to support them from your income, it looks like this is a tax dodge.

But as TCP says, chances of getting caught, even if it is, are low.

No I would never have the need to support my parents from my income. They both have low incomes now but have significant savings to live off. The reason why my accountant suggested it was that I could gift them shares as I have surplus income which I dont presently need (outgoings low no kids mortgage etc). One of the reasons I was concerned was because my dividend are taxed at 25% theirs are not.

[helen7]

I know people hate me asking this and doesn't bring much to the discussion but why are you not asking your accountant about all this?

This does seem to be the standard reply on this forum.

I would expect in most instances people are asking questions because:-

1. The accounts hold no liability. If they give you bad advice; you foot the bill.
2. Some accounts are very 'basic'. Especially some of the big ones. They shy away from questions of a compliated nature and just quote whatever is on the HMRC website.

[malvolio]

This does seem to be the standard reply on this forum.

I would expect in most instances people are asking questions because:-

1. The accounts hold no liability. If they give you bad advice; you foot the bill.
2. Some accounts are very 'basic'. Especially some of the big ones. They shy away from questions of a compliated nature and just quote whatever is on the HMRC website.

If a chartered professional gives you informed advice that turns out to be wrong then you sue them for the losses. That's why you ask the professionals (assuming your accountant is a chartered professional) rather than a random bunch of possibly well-informed but otherwise incompetent amateurs.

And I have to say my big account(ant) gives clear guidance on most anything and specific advice whenever I've needed it.

[helen7]

If a chartered professional gives you informed advice that turns out to be wrong then you sue them for the losses. That's why you ask the professionals (assuming your accountant is a chartered professional) rather than a random bunch of possibly well-informed but otherwise incompetent amateurs.

And I have to say my big account(ant) gives clear guidance on most anything and specific advice whenever I've needed it.

That's excellent news.

Wish me luck sueing Montpellier and Lighthouse IFA for advising me that using their 'tax planning' was perfectly legal and retrospective legislation was illegal.

--
I have a lot of contractor friends and the advice they get from so called accounts can be shocking. Once guy has been claiming travel expeses to the same location for 8 years. His accountant told him to ignore the 2 year rule and HMRC never follow up on this.

Another puts his rent, lunch, dinner, dry cleaning, sky tv all through the company. All 'above board' according to his so called accountant.

[LLP76]

I have had conflicting advice from accountants before hence my original question.

[ASB]

Strange.

why are you not retaining the money in the co? Your parents will of course receive 1/3 in perpetuity when you do need it.

I assume you anticipate getting it back via inheritance.

Though your arrangements look fine. Odd but effective.