Shoving some dividends into the missus

[d000hg]

Oh-er

https://www.gov.uk/tax-on-dividends/...ends-are-taxed

I'm aware that one cannot just pay their partner/spouse a salary for nothing. But can a company distribute shares as it pleases or are there restrictions and/or tax implications for the recipient?

I'm wondering about the benefit now the dividend tax is in effect, or gifting (selling?) shares in MyCo to my wife so that collectively we can take £10k dividends tax free. That £5k allowance per-person is worth £375/year on basic rate alone which is not to be sniffed at if it's easy and above board.

Did (m)any of you look into and actually end up doing this? What are the options and points to consider?

[SueEllen]

What role does your wife have in your company? Is she a director or company secretary?

Have a word with your accountant.

[northernladuk]

Bearing in mind it's been around since April I am sure there are plenty of threads on it you can search......

[LondonManc]

Bearing in mind it's been around since April I am sure there are plenty of threads on it you can search......

Or there's always the accountant route....

[northernladuk]

Or there's always the accountant route....

Indeed. SueEllen had that one covered off though

[Lance]

I'm aware that one cannot just pay their partner/spouse a salary for nothing. But can a company distribute shares as it pleases or are there restrictions and/or tax implications for the recipient?

Partner - not so easy
Spouse - much easier if the shares are equal. Google Arctic Systems. Better still sell shares rather than gift ( as a PSC it's probably only worth the assets anyway).

Timing - bloody awful, unless you've not declared a dividend so far. You cannot backdate dividends (that's illegal).

[LondonManc]

Indeed. SueEllen had that one covered off though

Indeed, it just sounds better coming from you. Nobody seems to give a toss when you say it

[Eirikur]

My company is split 51% for me 49% for my wife so are the dividends. She also receives a salary as an employee of about 8k per year for admin work. All perfectly legal and accountant approved

[LondonManc]

My company is split 51% for me 49% for my wife so are the dividends. She also receives a salary as an employee of about 8k per year for admin work. All perfectly legal and accountant approved

Certainly seems the standard approach. I leave my missus to get on with the company accounts and let me know how we're doing. The new kitchen looks lovely.

[MrMarkyMark]

FTFY

Certainly seems the standard approach. I leave my missus to get on with the company accounts and let me know how we're doing. The new kitchen looks lovely, but we are almost pot less.