s660A and Income Transfer opinion Please

[topgazza]

My accountant has advised that I can place my wife on the payroll as a salaried employee. And as a 50% shareholder

Reading about the dividends transfer issue with HMRC I would assume this is a no no ? She does answer the phone and deal with emails and responses to my accountant but is not an IT contractor and the income is derived from me. Thoughts please ?

[Kenny@MyAccountantFriend]

Spousal exemption means you can make her a shareholder and if she is doing work for the company, you can pay her a salary.

Another thread on the subject can be found here: http://forums.contractoruk.com/accou...band-wife.html

[eazy]

Arctic Systems

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Arctic revisited | Taxation

Don't see a problem with what your accountant is proposing.

[DaveB]

My accountant has advised that I can place my wife on the payroll as a salaried employee. And as a 50% shareholder

Reading about the dividends transfer issue with HMRC I would assume this is a no no ? She does answer the phone and deal with emails and responses to my accountant but is not an IT contractor and the income is derived from me. Thoughts please ?

You need to get your account to explain this to you.

Dividends are independent of any employment income or status.

Provided it's done correctly you can allocate shares to your wife and she can receive dividend income as a result of being a shareholder.

[topgazza]

Funny enough I did just read something that alluded to that.... as usual with HMRC "grey areas" is the new black and white

[northernladuk]

Bearing I mind we've been through this exact topic last week and we do it every other month the OP should have tried searching the forums first.

[northernladuk]

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Arctic revisited | Taxation

Don't see a problem with what your accountant is proposing.

There is if he wants her to be salaried and she does nothing for the company. Even if she does it has to be fair remuneration for the tasks i.e. what you would pay a stranger to do. That's not grey.. It's black and white.

[TheCyclingProgrammer]

My accountant has advised that I can place my wife on the payroll as a salaried employee. And as a 50% shareholder

Reading about the dividends transfer issue with HMRC I would assume this is a no no ? She does answer the phone and deal with emails and responses to my accountant but is not an IT contractor and the income is derived from me. Thoughts please ?

You haven't researched this nearly enough.

50% shareholder...fine, but let your accountant handle it so its dealt with properly.

Salary...depends what she's doing to earn that salary.

[topgazza]

I spent two hours this morning "researching" this... is that enough ?

Problem was I was no clearer as the many posts still didn't give a clear definition but lots of interpretations. But there appears to be a general consensus/bias based on what you say. So thank you for that and my accountant is dealing with it but just thought I'd ask here

I'm still a newbie so appreciate a bit of slack.... if it was that easy we wouldn't need this forum....