Making someone a shareholder Vs Gifting shares

[Lewis]

Dividend is always paid with 10% tax credit whether it is to you or your wife. He/She will have to pay this back via self assessment.

If the dividend you pay takes her over the 40% bracket (39K or something) then 40% applies .

I asked how to gift shares not pay dividends.

[Lewis]

My advice would be that if you need more than you can personally take tax-free (approx £3K pcm),

Eh? I'm not following. At present I am paying myself above £10K and wife below £5K. I have 100% shares and have yet to declare any dividends from this Ltd. I can obviously take up to around £20K divs myself with no extra tax but what is the £3K per month tax free?

[THEPUMA]

Eh? I'm not following. At present I am paying myself above £10K and wife below £5K. I have 100% shares and have yet to declare any dividends from this Ltd. I can obviously take up to around £20K divs myself with no extra tax but what is the £3K per month tax free?

£100 pw salary plus £2,588 pcm divi comes to £3,021 pcm which you can take without incurring any tax liability.

[Lewis]

£100 pw salary plus £2,588 pcm divi comes to £3,021 pcm which you can take without incurring any tax liability.

Ah ok I get you. yep that's fine. So are you saying, do that until Artic result keeping rest in company accounts? yes I supose that is very good advice. I don't need any more than that to survive. Ok you've persuaded me.

[ookook]

how do expenses affect the 3K odd a month figure you mentioned Puma?

My accountant sends me a wage slip with my directors salary @ £500 odd pcm plus another £500 odd in expenses I incurred during the month - from my personal expenditure as opposed to straight from the ltd co bank account

Does that extra £500 in expenses count towards the 3K odd i should be withdrawing to minimise tax?

Ie should I draw 2K in divis to make my total £500 salary £500 expense £2K divis

or is it added on so i can draw £500 salary £500 expense £2.5K divis?

[malvolio]

how do expenses affect the 3K odd a month figure you mentioned Puma?

My accountant sends me a wage slip with my directors salary @ £500 odd pcm plus another £500 odd in expenses I incurred during the month - from my personal expenditure as opposed to straight from the ltd co bank account

Does that extra £500 in expenses count towards the 3K odd i should be withdrawing to minimise tax?

Ie should I draw 2K in divis to make my total £500 salary £500 expense £2K divis

or is it added on so i can draw £500 salary £500 expense £2.5K divis?

This is no doubt a stupid question, but why don't you ask your accountant to explain his figures and your tax liability for them. That's what you pay him for.

[THEPUMA]

how do expenses affect the 3K odd a month figure you mentioned Puma?

My accountant sends me a wage slip with my directors salary @ £500 odd pcm plus another £500 odd in expenses I incurred during the month - from my personal expenditure as opposed to straight from the ltd co bank account

Does that extra £500 in expenses count towards the 3K odd i should be withdrawing to minimise tax?

Ie should I draw 2K in divis to make my total £500 salary £500 expense £2K divis

or is it added on so i can draw £500 salary £500 expense £2.5K divis?

It's £3K plus expenses.

[ookook]

This is no doubt a stupid question, but why don't you ask your accountant to explain his figures and your tax liability for them. That's what you pay him for.

It probably is a stupid question but i didnt know the answer, and this way others get to benefit from my stupidity by seeing the answer in a forum

[ASB]

£100 pw salary plus £2,588 pcm divi comes to £3,021 pcm which you can take without incurring any tax liability.

I think you meant additional tax liability (i.e. higher rate income tax). The divi has of course already suffered CT in most cases.