Shareholders - Income shifting

[itsme]

Have the legislation for this changed yet? If not what is the likelyhood they will back date?

What is a good allocation of shares for paying spouse shares for work they do on my books?

Thanks in advance

[Bluebird]

The new legislation is due to be announced / introduced in April 2009.

You can currently have a 50/50 split of shares between you and your spouse regardless of the amount of work they do.

In the future it's liekly that this will change, although how this willwork as yet nobody [ and I guess that includes the gvt ] know.

[BrilloPad]

The new legislation is due to be announced / introduced in April 2009.

You can currently have a 50/50 split of shares between you and your spouse regardless of the amount of work they do.

In the future it's liekly that this will change, although how this willwork as yet nobody [ and I guess that includes the gvt ] know.

I think we can be sure it will be something like the IR35 stuff - totally bodged and probably unenforceable.

[philip@wellwoodhoyle]

What is a good allocation of shares for paying spouse shares for work they do on my books?

How about paying them a wage commensurate with the hours actually worked and at a market hourly rate for the type of work they do?

Obviously no-one knows what the new rules will be (if they come in at all) but given their stance on the "personal service company" question in the tax return, it wouldn't be a surprise if the "fee earner" was taxed on all the dividends leaving nothing but market rate salary for any administrative staff.

[Fred Bloggs]

Myself, I'm just hoping that the Gov't have so many other problems that this one will be quietly forgotten about............... Am I being too optimistic?

[Bluebird]

How about paying them a wage commensurate with the hours actually worked and at a market hourly rate for the type of work they do?

Obviously no-one knows what the new rules will be (if they come in at all) but given their stance on the "personal service company" question in the tax return, it wouldn't be a surprise if the "fee earner" was taxed on all the dividends leaving nothing but market rate salary for any administrative staff.

With the current personal alloawance about £6k, am I right in thinking that if I pay my spouse £500 a month based on £10 an hour for 50 hours a month [ equivilent to abou 2.5 housr a day ], then she pays no tax?

[ASB]

With the current personal alloawance about £6k, am I right in thinking that if I pay my spouse £500 a month based on £10 an hour for 50 hours a month [ equivilent to abou 2.5 housr a day ], then she pays no tax?

Correct, provided she has no other income.

[Bluebird]

Correct, provided she has no other income.

Only Dividends

[ASB]

Only Dividends

The other advantage will be her state pension. Paying her 6k (which costs absolutely nothing in NI) will get her 1 years worth of entitlement. Now (or is it next year) the requirement drops to 30 years fpr full state pension entitlement.

Ok, it's not going to make a huge difference when you retire, but it will be a damn site better than a poke in the eye with a sharp stick.

[Peoplesoft bloke]

Myself, I'm just hoping that the Gov't have so many other problems that this one will be quietly forgotten about............... Am I being too optimistic?

Probably - I can't help feeling the impetous for all this comes from Hector, and since this goverment has given hector more resources, he's going to keep on regardless of El Gordo and his mob.