New Accountant - advises against income splitting

[LondonManc]

dodgy of safe?

Crap.

[MrButton]

my accountant has also advised against it he also has advised against giving out dividends saying its risky and safer just to pay the tax on profits after the whole year. Told me apart from the salary leave all income in the account

Sounds like you need a new accountant.

[abu1]

Sounds like you need a new accountant.

He said he does not want to bring any suspicion from hrmc on me and that I should just play it safe . I wanted to purchase new mobile phone he said don't will make things complicated

[northernladuk]

He said he does not want to bring any suspicion from hrmc on me and that I should just play it safe . I wanted to purchase new mobile phone he said don't will make things complicated

Christ you most certainly want to get rid of them. Phones are very well documented and quite acceptable.

[LondonManc]

He said he does not want to bring any suspicion from hrmc on me and that I should just play it safe . I wanted to purchase new mobile phone he said don't will make things complicated

Better walk to work if he's your accountant. It'll be for the best and won't bring suspicion upon you. Unless you claim for shoes of course.

[abu1]

Better walk to work if he's your accountant. It'll be for the best and won't bring suspicion upon you. Unless you claim for shoes of course.

I will change accountants after next financial year.

[northernladuk]

I will change accountants after next financial year.

No. Do it now.

[ladymuck]

No. Do it now.

+1

[craigy1874]

Ever hear of HMRC challenging director's remuneration of £8K or even £11K?

They'd have to quantify the proper amount of compensation to compensate a director for the liability they incur by serving in that role. How can they prove it should be less than £11K?

If you pay a spouse director's compensation of £50K or £100K you might have an issue, but then IT, ERNI, and EENI come into play, so no one would do that and they wouldn't be likely to object.

No reason, really, other than that it is illegal.

You are missing the point! It is clearly uncommon for HMRC to challenge it, but believe me, if you get a CT enquiry, they will ask for it to be justified. There is a big difference between not having to justify it and HMRC hardly ever querying it!

So you are assuming all children in the world are under 16? Nice one!

[WordIsBond]

It is clearly uncommon for HMRC to challenge it, but believe me, if you get a CT enquiry, they will ask for it to be justified.

Maybe I missed the point but you didn't answer my question. Have you ever heard of HMRC challenging it? Or is this just one of those ghost stories accountants tell each other around the campfire when they get together?

So you are assuming all children in the world are under 16? Nice one!

Heh. My son who happens to be somewhat over 16 is a director in my company. But it's pretty hard to see that as coming under the subject of this thread (income splitting) because anything that is paid to him I'll never see again....