Modest Alphabet Shares for Son

[chavvy]

I am considering allocating B share to my son and giving him money whilst at University.

We are talking about £4000/annum in dividends.

I have read some of the posts on this forum about Alphabet shares, but this do not seem to fit into my specific case. Mainly because the sums in this case are much smaller.

Any advice welcome.

P.s. I am already getting advice from my accountant and AI.

[WTFH]

I would advise against alphabet shares like this, I would also advise against using AI for accountancy questions.
AI will not fill out tax returns or fight for you if HMRC come knocking.

[eek]

£4000 whilst at university - just pay him via PAYE.

why on earth do people make things stupidly complex

[chavvy]

£4000 whilst at university - just pay him via PAYE.

why on earth do people make things stupidly complex

But surely then I would have to demonstrate that he is doing some sort of work for the company? (he isn't)

[eek]

But surely then I would have to demonstrate that he is doing some sort of work for the company? (he isn't)

You are paying him money for a tiny amount of work done, HMRC really aren't going to care...

[northernladuk]

So you want to give your son shares so you can divert some of the company money to him instead of taking out yourself and paying the proper tax on it and then gifting it? Isn't that the definition of 'Income shifting'?

And if you are AI'ing it isn't the first thing it told you was that this is a bad idea? Not sure I'd be asking on here first before AI'ing it to get the lay of the land.

[ladymuck]

But surely then I would have to demonstrate that he is doing some sort of work for the company? (he isn't)

Lol

That notion would put many permies out of a job

[jamesbrown]

I agree with everyone that you are massively over-complicating it, mainly because you want to save money. FFS, just give home some money out of your savings, paying yourself a dividend first, if needed.

[NotAllThere]

Lol

That notion would put many permies out of a job

And 99% of all managers. As for executives...

[courtg9000]

IMHO only.
Not financial advice, you should have an accountant and a lawyer and they should be very good ones.
The only reason I would personally use these shares is for voting rights alone.
YMMV