Dividends query

[skelm]

Both me(75%) and wife(25%) have shares in the Ltd co.

When paying divi's, do I have to pay her share/divi's direct to her account from the business acc or can I just xfer all to my personal account from biz acc?

Thanks

[SueEllen]

You need to transfer money to all the shareholders accounts.

Your wife and yourselves are individuals for tax purposes and if you transfer the money to only to your account if you are ever investigated then you would owe the taxman back taxes.

[skelm]

Thanks ... thought as much ....

[moorfield]

... but if you have a joint current account with the missus I think that's ok.

[oracleslave]

... but if you have a joint current account with the missus I think that's ok.

That was the question that just went through my mind as that's my situation.

[Ruprect]

to be 100% clear I would make it as 2 different payments for the respective amounts into the account, not just one payment with the total.

[DaveB]

... but if you have a joint current account with the missus I think that's ok.

Not nessecerily ?. To be safe you need to pay the dividends into an account that is clearly hers and hers only. If the money is seen to be coming back to you in any direct manner, which it is in a joint account, then you can become liable for the tax implications and accusations of tax evasion and improper payment of dividends.

[moorfield]

Agree with Ruprect that they should be paid as separate transactions.

There's nothing wrong with husband and missus paying separate salaries into a joint account so I can't imagine divis would be seen differently.

And of course as long as it's all declared properly on Self Assessment (if required for the missus) then it shouldn't be a problem.

[Platypus]

to be 100% clear I would make it as 2 different payments for the respective amounts into the account, not just one payment with the total.

You're correct.