At which point is it worth having the wife as a Director?

[Fred Bloggs]

What advantage is there is having her as a director? I would have thought that it's just more hassle?

Limited really, but she signs contracts and other stuff that needs a directors signature. She is proactive in running the buisiness side of things and all decisions made are joint director decisions. In other words, a "proper" family business.

[ratewhore]

If you make your wife a director then she will have to complete SA.

You referring to self assessment? If she is not a director, just a shareholder, are you saying she doesn't need to fill in a SA?

Where did you get that from?

[Alan @ BroomeAffinity]

You referring to self assessment? If she is not a director, just a shareholder, are you saying she doesn't need to fill in a SA?

Where did you get that from?

If her total income does not exceed the higher rate threshold and she isn't a director then there is no SA requirement.

[slackbloke]

You referring to self assessment? If she is not a director, just a shareholder, are you saying she doesn't need to fill in a SA?

Where did you get that from?

It is as Just1morethen stated. The implication from the OP is that they will try and remain below the threshold, so unless the wife has other complicated tax matters, she would not need to complete SA. It is the HMRC regs for SA.

[Lewis]

If her total income does not exceed the higher rate threshold and she isn't a director then there is no SA requirement.

I think if you receive more tha £10K in dividends (gross) you must complete a form. See here http://www.hmrc.gov.uk/sa/need-tax-return.htm. You are classified as having "complex tax affairs".

[Archangel]

If her total income does not exceed the higher rate threshold and she isn't a director then there is no SA requirement.

Care to correct this in the light of Lewis's answer above?

[blacjac]

I think if you receive more tha £10K in dividends (gross) you must complete a form. See here http://www.hmrc.gov.uk/sa/need-tax-return.htm. You are classified as having "complex tax affairs".

I take it you mean this rule (lifted from your link):

have annual income from savings or investments of £10,000 or more (before tax)

That's in interesting one, I suppose it all depends on if the HMRC regard owning shares in a private Ltd as an investment or not...
Anyone know the answer to this? Especially if the shares were gifted and not paid for?

[Nixon Williams]

That's in interesting one, I suppose it all depends on if the HMRC regard owning shares in a private Ltd as an investment or not...
Anyone know the answer to this? Especially if the shares were gifted and not paid for?

Dividend income, whether from a private or a public company will be treated on the tax return as investment income.

Alan

[thunderlizard]

So she can be a sharedholder without being a director!

Thank goodness for that. That means I can keep my FTSE 100 tracker pension, without having to go to all those FTSE 100 company board meetings.

[blacjac]

I take it you mean this rule (lifted from your link):



That's in interesting one, I suppose it all depends on if the HMRC regard owning shares in a private Ltd as an investment or not...
Anyone know the answer to this? Especially if the shares were gifted and not paid for?

Dividend income, whether from a private or a public company will be treated on the tax return as investment income.

Alan

Well that clears that one up then!

Thanks Alan