Income shifting - Dividend calc

[al_cam]

don't forget that you can't just pay whatever dividends you like - they have to be in line with shareholdings, so to pay yourself 25k and your wife 10k, you must hold about 71% of the shares and your wife 29%.

I was advised (by SJD) that shareholders do not have to take dividends - the op's wife could simply choose not to take her dividend, leaving the money in the business. I would make sure though that had she chosen to take the dividend, that there would have had sufficient funds in the business to cover it - just in case as the tax man would take a very dim view of this if he investigated.

[slackbloke]

I was advised (by SJD) that shareholders do not have to take dividends - the op's wife could simply choose not to take her dividend, leaving the money in the business. I would make sure though that had she chosen to take the dividend, that there would have had sufficient funds in the business to cover it - just in case as the tax man would take a very dim view of this if he investigated.

Yeah that was my understanding too, you can take a dividend waiver although it is better if it is used for commerical reasons and not for tax avoidance.

[stphnstevey]

If it was created with excel, open it with openoffice & simply turn protection off or vice-versa if created in openoffice. Works a treat.

Password protected