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Shoving some dividends into the missus

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    Shoving some dividends into the missus

    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?
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    #2
    What role does your wife have in your company? Is she a director or company secretary?

    Have a word with your accountant.
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      Bearing in mind it's been around since April I am sure there are plenty of threads on it you can search......
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by northernladuk View Post
        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....
        The greatest trick the devil ever pulled was convincing the world that he didn't exist

        Comment


          #5
          Originally posted by LondonManc View Post
          Or there's always the accountant route....
          Indeed. SueEllen had that one covered off though
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by d000hg View Post

            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).
            See You Next Tuesday

            Comment


              #7
              Originally posted by northernladuk View Post
              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
              The greatest trick the devil ever pulled was convincing the world that he didn't exist

              Comment


                #8
                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

                Comment


                  #9
                  Originally posted by Eirikur View Post
                  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.
                  The greatest trick the devil ever pulled was convincing the world that he didn't exist

                  Comment


                    #10
                    FTFY

                    Originally posted by LondonManc View Post
                    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.
                    The Chunt of Chunts.

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