New company formation - dividend split husband/wife

[northernladuk]

Mine has found errors my former accountant made that will result in a nice tax refund.

Of which you won't see a penny lol

[ContractorBanking]

Even if you don't pay them a salary, if you're making your spouse a shareholder do strongly consider making them either a director or company secretary so they can be eligible for entrepreneurs relief in the future on any capital distribution, or you could end up paying more CGT than you need to.

Thanks for that - that's a very good point indeed. Going to chase up with my accountant.

Currently the missus is only the Co Secretary and will be a 50% shareholder (once its been agreed and accountant gives the nod).

Should I also make her a Director as well? Does it strengthen the case for Entrepreneurs Relief or is Co Secretary enough?

[TheCyclingProgrammer]

Thanks for that - that's a very good point indeed. Going to chase up with my accountant.

Currently the missus is only the Co Secretary and will be a 50% shareholder (once its been agreed and accountant gives the nod).

Should I also make her a Director as well? Does it strengthen the case for Entrepreneurs Relief or is Co Secretary enough?

My wife is company secretary and AFAIK that qualifies her (or I've been wrongly advised).

Edit: "Disposal of shares in your personal company":
https://www.gov.uk/government/public...ing-conditions

you must be either an officer or employee of that company (or an officer or employee of one or more members of the trading group)

You also need to own at least 5% of the shares and the company must be a trading one.

[psychocandy]

Mine has found errors my former accountant made that will result in a nice tax refund.

Sadly my mrs idea of a result would be some nice new shoes shes found on sale....

[Sausage Surprise]

Agreed. It worries me when I see couples talking about "his money" and "my money".
How can you share a life but not share everything in that life?

A little off topic now though, so I'll stop pontificating.

Because some women (and men) are crap with money. If me and my ex had had a joint account she'd have bankrupted me years ago.

[psychocandy]

Because some women (and men) are crap with money. If me and my ex had had a joint account she'd have bankrupted me years ago.

And I thought my Mrs was bad. Maybe I should be grateful. Shes not that bad - she has access to bank accounts and more importantly, additional card on my amex plantinum with big limit.

All I need to do is occasionally sit here down and have a quiet word. Still annoying mind that I have to keep doing it.

[Andrew@Wisteria]

Thanks for that - that's a very good point indeed. Going to chase up with my accountant.

Currently the missus is only the Co Secretary and will be a 50% shareholder (once its been agreed and accountant gives the nod).

Should I also make her a Director as well? Does it strengthen the case for Entrepreneurs Relief or is Co Secretary enough?

As said below, you need to be an officer or an employee to benefit. A company secretary would qualify as an officer.

[portseven]

70/30 here

[ContractorBanking]

70/30 here

What's the reason for the 70/30 split and why not 50/50?

Curious to know the reasoning behind the split.

[portseven]

What's the reason for the 70/30 split and why not 50/50?

Curious to know the reasoning behind the split.

Advice of accountant plus i think it's feels right regards Mrs contribution, I am doing a lot of the work, and she contributes to admin and decision making