two in one

[tim123]

so how do "real" companies do it? never been entirely sure of this

Real companies would never be in this position.

You have two people, both of which want to be paid exactly the amount of income that they bring to the company.

And those two people want 95% of their income to come via dividend payments, so it has to be paid in proportion to their shareholding.

A real company would make the apportioned payments via PAYE.

tim

[expat]

Real companies would never be in this position.

You have two people, both of which want to be paid exactly the amount of income that they bring to the company.

And those two people want 95% of their income to come via dividend payments, so it has to be paid in proportion to their shareholding.

A real company would make the apportioned payments via PAYE.

tim

Yes, shareholders of a real company expect to be paid without bringing any income to the company. Naturally they would not pay NICs on what they receive, that is only for those who have actually worked for their money.