Salary / Dividend Tax

[malvolio]

Umm, that's pretty much exactly what I said that I'd assumed. So I do understand it correctly. If it's 50/50 split then the dividends should be split 50/50.

So, the only way to save some tax would be if she owned 90% and whatever dividend pot was issued out, I'd only get 10% of it and pay higher tax on 10% with her paying lower tax on 90%.

Or something...

It depends on your specific circumstances, what individual incomes you both have, what your tax codes are and various other issues around child allowances and the like, what your pension plans are, what your war chest reserves are like and no doubt some others. So it's time to hit the spread sheet.

[oilboil]

Or something...

It depends on your specific circumstances, what individual incomes you both have, what your tax codes are and various other issues around child allowances and the like, what your pension plans are, what your war chest reserves are like and no doubt some others. So it's time to hit the spread sheet.

Also depends on the likeliness of a marriage breakdown, passing 90% to essentially the "silent partner" in the business means they get 90% if they decide to wind it up

[Lance]

Also depends on the likeliness of a marriage breakdown, passing 90% to essentially the "silent partner" in the business means they get 90% if they decide to wind it up

It’s worse than that.
With 90% they can unilaterally dilute the other shareholders shares further. OPs 10% could become 0.01% really quick if better half decides to.

[psychocandy]

For me this tax year, because I've already earned way into the upper tax bracket with my previous (umbrella) contract (and since wife only earns £20K a year in her own job),

it makes a MASSIVE difference in tax if I give my mrs 90% and I get 10%. Plan being then to change it for next tax year.

Accountant is not overkeen on this. Anyone do this? Its not illegal is it?

Obviously, I appreciate that if the mrs decides to play hide the sausage with the postman it could be problematic!

[malvolio]

For me this tax year, because I've already earned way into the upper tax bracket with my previous (umbrella) contract (and since wife only earns £20K a year in her own job),

it makes a MASSIVE difference in tax if I give my mrs 90% and I get 10%. Plan being then to change it for next tax year.

Accountant is not overkeen on this. Anyone do this? Its not illegal is it?

Obviously, I appreciate that if the mrs decides to play hide the sausage with the postman it could be problematic!

I get this terrible feeling of deja vu...

Why do you have to ask the same question twice? Why do you think we're still interested in answering it? How much are you offering for us to do your job for you? This thread already spells out quite clearly what the problems are.

1/10, must try harder...

[northernladuk]

For me this tax year, because I've already earned way into the upper tax bracket with my previous (umbrella) contract (and since wife only earns £20K a year in her own job),

it makes a MASSIVE difference in tax if I give my mrs 90% and I get 10%. Plan being then to change it for next tax year.

Accountant is not overkeen on this. Anyone do this? Its not illegal is it?

Why did you not ask him why not rather than ask a bunch of contractors who generally think you are a bit of a waste of time?