S660 : How many people here are still allowing a partner to take dividends?

[theemeestroo]

How many people here aren't waiting till the Arctic Systems result and are currently paying their partners dividends? Even if Arctic systems are successful, will people be flocking back to using this route?

[Sockpuppet]

I thought arctic systems had won? Or did it go back to another appeal?

[Nixon Williams]

Arctic did win but the Revenue have noe taken it to the House of Lords, expected in June, so we are waiting for the final judgement!

Alan

[oxtailsoup]

artic

My wife still takes a salary and divi's. She does all the company admin and also bills clients for training and consultancy in her own right (i.e. training that she provides). Whilst she doesn't bill as much as I do her work input matches my own.

[VinnyB]

My wife is employed by my company and receives dividends. I have limited the amount that goes out to soften the blow of any future claim by the HMRC while the case is pending. What I do next FY will probably be something like - hold off any divi payments until after June, then either she gets a big fat cheque or she doesn't. Not sure if this is the right thing to do, but who knows.

[Sockpuppet]

Arctic did win but the Revenue have noe taken it to the House of Lords, expected in June, so we are waiting for the final judgement!

Alan

Most of the house of lords probably do the same so they are likely to rule in favour for us.

[Lockhouse]

I am waiting for the result before deciding whether to fund a business for my wife via my Ltd.

[meridian]

My wife is employed by my company and receives dividends. I have limited the amount that goes out to soften the blow of any future claim by the HMRC while the case is pending. What I do next FY will probably be something like - hold off any divi payments until after June, then either she gets a big fat cheque or she doesn't. Not sure if this is the right thing to do, but who knows.

How do you manage to do this? Do you still pay dividends to yourself?

[martinb]

My wife is employed by my company and receives dividends. I have limited the amount that goes out to soften the blow of any future claim by the HMRC while the case is pending. What I do next FY will probably be something like - hold off any divi payments until after June, then either she gets a big fat cheque or she doesn't. Not sure if this is the right thing to do, but who knows.

Dividends are paid to shareholders, not employees. You don't have to be an employee to be a shareholder and you don't have to be a shareholder to be an employee. Of course, she maybe an employee AND a shareholder - but there is massive difference between the two. If she is an employee but not a shareholder and you've been paying her divis, you've got some problems to sort out.

[martinb]

How do you manage to do this? Do you still pay dividends to yourself?

You can only pay dividends in proportion to the shareholding (assuming equal status shares),. You can't choose to pay one shareholder divis, but not the other(s).