Claimed Dividend Non Payments

[GhostofTarbera]

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Withdrawls from the account were, except for about a grand or so over the three years in question, made by her (our child was never a shareholder).

This continued until the winding up of my Ltd Company.

Thankfully the overwhelming opinion seems to be what I had hoped - without any unexpected 'yeah buts'.

My books show that the dividends were correctly recorded and demonstrably said monies were made available to her, for her sole use and enjoyment.

Thanks again.

If I was the ex I would be looking for my 25% from all dividends you took out of the company as I’m sure I did not refuse them (not in company minutes etc) + 25% of the MVL if anything left




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[BrilloPad]

You need a solicitor specialising in family matters.

[northernladuk]

If I was the ex I would be looking for my 25% from all dividends you took out of the company as I’m sure I did not refuse them (not in company minutes etc) + 25% of the MVL if anything left

Plus a nice little payout that I'd feel I'm due for putting up with him else I'll make his life a living hell, including dobbing him in to HMRC. If he's badly run his company meaning I lose some of my divis I'll sue him for the difference and more for mismanaging everything.

But I'm a nice guy really.

[eek]

Plus a nice little payout that I'd feel I'm due for putting up with him else I'll make his life a living hell, including dobbing him in to HMRC. If he's badly run his company meaning I lose some of my divis I'll sue him for the difference and more for mismanaging everything.

But I'm a nice guy really.

My concern would be this bit

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Were I his ex, my concern would be the use of dividends to pay rent she probably wasn't aware of using her taxable dividend payments. I wouldn't be surprised if the girlfriend should have been doing tax returns and paying 7.5% of dividend tax on money she wasn't aware she was receiving...

It's a brilliant example of the first post not telling the full story (and the real story being far, far worse than the initial post).

[Drei]

My concwen would be this bit



Were I his ex, my concern would be the use of dividends to pay rent she probably wasn't aware of using her taxable dividend payments. I wouldn't be surprised if the girlfriend should have been doing tax returns and paying 7.5% of dividend tax on money she wasn't aware she was receiving...

It's a brilliant example of the first post not telling the full story (and the real story being far, far worse than the initial post).

I love it how you can missplace dividends ant not declare them and pay the dividend tax)) That reminds me of a contractor I worked a few years back, HMRC never asked him to do SA so he used to pay himself, give Dividednds all without filling in a Self Assessment. This went on for years.

Saiying that, my partner and I were in the same situation. I got the SA request from HMRC, they did not... so they could have went on getting £100k in dividends all tax free)) but I made them register. Ah well... sucks to play by the rules and do the right thing.

[Paralytic]

Saiying that, my partner and I were in the same situation. I got the SA request from HMRC, they did not... so they could have went on getting £100k in dividends all tax free)) but I made them register. Ah well... sucks to play by the rules and do the right thing.

I'm sure you know this, but not paying tax on something does not make it tax free, and that it is the individuals responsibility to complete the SA, if required.

[northernladuk]

I'm sure you know this, but not paying tax on something does not make it tax free, and that it is the individuals responsibility to complete the SA, if required.

It's Drei.. he's starting to make a habit of this type of thing.

[SimonMac]

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Hang on, are you saying that you stopped paying her dividends into the joint account and into an account you control to then use that money to pay for commitments she owed you?

If so I wouldn't be worried about fraud, we are now talking about theft

[eazy]

What about Settlements legislation?

Settlements legislation
TSEM4355 - Trusts, Settlements and Estates Manual - HMRC internal manual - GOV.UK
In most everyday situations involving gifts, dividends, shares, partnerships, etc. the settlements legislation will not apply. If there is no “bounty” or if the gift to a spouse or civil partner is an outright gift which is not wholly, or substantially, a right to income, then the legislation will not apply.

In this case OP is not married, used dividends against rent, looks like "a right to income"