• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

[Tax Planning][17/18] Company structure - spouse

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

  • ladymuck
    replied
    Am I right in thinking you don't have to appoint a company secretary any more? Or, is this secretary role quite literally that, and not an official role?

    Leave a comment:


  • northernladuk
    replied
    Pffff. 8k for secretarial duties when she's working the same hours as you. You are having a laugh.....

    Leave a comment:


  • Alan @ BroomeAffinity
    replied
    You're thinking along the right lines but you need to nail down a couple of basics. Give an accountant a shout. There's a few of us on here I'm sure would be happy to help you out.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    If your spouse is already getting dividends which will likely take her into the higher rate band then I can't see any logic in paying her a salary.

    Reducing the shareholding might be sensible if she is expected to stay on this salary level, but you don't want to be constantly messing around with your share structure IMO.

    Speak to an accountant.

    Leave a comment:


  • eazy
    replied
    Dividends

    You need to take into account the dividends as well when making the decision regarding shareholdings. In this case, your spouse's dividends will be taxed at the higher rate.

    I would not pay a salary to the spouse, only dividends. Set the shareholding such that it takes spouse's earnings to higher rate threshold.

    I would take professional advice as suggested above.

    Leave a comment:


  • Lance
    replied
    1. Get an accountant.
    2. Ask him/her.
    3. Ask him/her to setup the company. A lot of firms include that in the price.

    Leave a comment:


  • atanas
    started a topic [Tax Planning][17/18] Company structure - spouse

    [Tax Planning][17/18] Company structure - spouse

    Hello,

    I am planning to incorporate a LTD next month and I need an advice on the company structure:

    That's the plan:

    Director[50% shares]:
    • Profile: Senior Automation QA
    • Desired daily rate: ~ £350-£500
    • Target anual income: ~ £90,000 - £100,000
    • Director salary: £8,150


    Secretary[50% shares]:
    • Anual income:
      * ~ £32,000 permanent employment outside the LTD
      * £8,150 secretary salary

    1. Does this company structure make sense considering that my wife is a permie and gets salary just below the basic rate? Will there be tax advantage if I include her as an employee?
    2. Shall I reduce her shares to 35%?


    Thanks all
    Last edited by atanas; 28 January 2017, 11:36.

Working...
X