Can my wife, who is a director, receive a dividend?

[sergeantpluck]

Thanks for the feedback. It would seem the time to gift my wife shares was when I created the ltd company and now it is too late but I should still consult with a good accountant. This all sounds a bit risky though I have to say. It looks like I still have a lot to learn about being self-employed!

[northernladuk]

Thanks for the feedback. It would seem the time to gift my wife shares was when I created the ltd company and now it is too late but I should still consult with a good accountant. This all sounds a bit risky though I have to say. It looks like I still have a lot to learn about being self-employed!

[hobnob]

It looks like I still have a lot to learn about being self-employed!

Just to nitpick, technically you're not self-employed. Using HMRC's definition, that applies to sole traders rather than directors of limited companies.

[Andy2022]

Just to nitpick, technically you're not self-employed. Using HMRC's definition, that applies to sole traders rather than directors of limited companies.

Contractors being described as self-employed is one of the things that really hacks me off when I read articles about IR35 in the mainstream press

[northernladuk]

Just to nitpick, technically you're not self-employed. Using HMRC's definition, that applies to sole traders rather than directors of limited companies.

It's a good point and not nit picking in the context of the OP's post. He's got it wholly wrong. Argument about self employed/LTD aside he's not going to find the information he needs. It's running a company he's not a clue about so researching self employed isn't going to help him.

[SimonMac]

I've been a contractor two years, my wife became a director after one year, and receives a small salary. She manages FreeAgent for us but I am the main fee-earner (my wife does not have another job). We wanted to be able to pay her a small dividend each month on top of the small salary but having read extensively here and online it could be I should have given her shares from the start and now it is too late and any new shares provided to her will make HMRC come after us.

I had thought the Arctic services case meant we could with little risk, provide my wife with a smaller dividend than mine. I have a cheapo accountant who has advised I seek advice somewhere else - I am asking around now but wanted to know what you all thought. Am I barking up the wrong tree here? Should we just keep her on the salary with no dividend? Thank you kindly in advance.

No

[sergeantpluck]

It's a good point and not nit picking in the context of the OP's post. He's got it wholly wrong. Argument about self employed/LTD aside he's not going to find the information he needs. It's running a company he's not a clue about so researching self employed isn't going to help him.

But I did find the information I need, here in this thread and on these forums

Thank you for the advice everyone, I'm looking for a new accountant who will be willing to advise on such matters. I'm inclined to avoid any risk and issue an additional dividend to myself and pay the higher tax rate.