How much salary do you pay to your company secretary (spouse) in your ltd company?
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£5,200 this year. And she contributes around £5,200 of effort in performing that role albeit part-time.Illegitimus non carborundum est! -
£100/month plus benefits
. My accountant advised IR guidelines were no more than £200 / month - based on the amount of work he would have to do for me. But then my business is very limited on paperwork etc.
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Originally posted by dmini£100/month plus benefits . My accountant advised IR guidelines were no more than £200 / month - based on the amount of work he would have to do for me. But then my business is very limited on paperwork etc.
My spouse is a high rate tax payer so I don’t think I can get any tax benefit from her as a company secretary in my ltd company. What is the minimum salary I can pay the company secretary based on the minimum wage of GBP5.7 per hour?Comment
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You can of course...Originally posted by clwd
You set up her primary salary as being your limited, and then pay her the 5200 (or thereabouts).
It attracts little or no NI and no personal tax (using up her tax allowance).
She then tells the other employer that she wishes to class that as her second employment which means all money will be taxed and no 'free allowance' given to her in that role.Comment
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It might also be worth remembering that if total salary and total benefits are < 8.5k and not a director then there is no BIK tax. Might be a way of providing a car for her or similar instead of salary.
I had some problems in this area but see what your bean counters think.Comment
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Is that true, that sounds almost too good to be true? How that does doing these kind of things reflect on the S660 Arctic Systems case?Originally posted by ASBComment
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No, I just made it up
How will it interact with S660 - don't know.
How will it interact with other employment - don't know.
But, the rules are that there is no need to submit a P11 for anbody earning less than £8,500 a year including the value of benefits. They go on a P9 instead. Some research on HMRC might yield easy results.
But, it's getting very close to the wind. A lot of people would possibly consider it too far.
By some coincidence Mrs ASB received a company card and no salary years ago. The combined value of this was about 7.5k.
Mr HMIT went apoplectic in the investigation. He wanted to assess the car to me as a second company car. He backed down when I refused to go back on my assertion that I would have employed anybody on the same basis. However we did eventually agree a samll setllement on thyis item.
As I say, run it by your accountants, there may well be case law since then which gives the tax man more ability to charge you for it. What you can be absolutely certain of is he will want to charge somebody - whether or not he succceeds is a different matter.Comment
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Very much agreed with that comment, thanks for the explanation of what you've done....Originally posted by ASBComment
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Dug out a couple of links for the position related to Class 1A NICs:-Originally posted by dejongj
http://www.hmrc.gov.uk/manuals/nimmanual/nim13002.htm
http://www.hmrc.gov.uk/manuals/nimmanual/nim13110.htm
And Schedule E tax:-
http://www.hmrc.gov.uk/manuals/rpsmm...sm07102220.htm (not entirely relevant becauses it's pension related but sort of shows what I'm getting at)
It does seem that there may still at least be scope to save Class1A NI if you wish to embark on some borderline tax planning.Comment
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