Splitting divs between husband and wife

[Fred Bloggs]

I've been off the radar on this one Fred so would appreciate an explanation on why you do this?

While Arctic Systems was bubbling away, I kept my pay/divi below the 40% threshold and the missus took a dividend waver. That led to there being a fair bit of cash in the business account. Post Arctic, the missus is now taking divis again and we've drawn out all the surplus cash that was in there. I operate the bank account with as little cash in it as possible, that way there's less cash available in the business to attract the attention of Hector.

[ChimpMaster]

While Arctic Systems was bubbling away, I kept my pay/divi below the 40% threshold and the missus took a dividend waver. That led to there being a fair bit of cash in the business account. Post Arctic, the missus is now taking divis again and we've drawn out all the surplus cash that was in there. I operate the bank account with as little cash in it as possible, that way there's less cash available in the business to attract the attention of Hector.

I didn't think that cash in the business account would attract HMRC's attention. If anything, taking large dividends would probably get more attention seeing as it's highlighted on the tax return.

[Fred Bloggs]

I didn't think that cash in the business account would attract HMRC's attention. If anything, taking large dividends would probably get more attention seeing as it's highlighted on the tax return.

I think it's debatable. But the way I see it is that when HMRC are doing their risk/reward assessment on businesses to attack, the business with almost no cash is far less attractive of a target than a business flush with cash. We have not pulled the extra cash out in just one year, to do so would be waving a flag, I agree. However, IMO, there will be tens of thousands of Ltd Co's who have distributed extra cash as a result of the Arctic decision. We are not unusual in that respect.

[Little'Old Me]

It's the most bizarre wording. I work for a multi billion international service provider. I like most of the other few thousand employees have a few shares.

We all have to ticke the box under that wording.

Would you really qualify under all three? As long as you don't qualify under one, you don't have to "tick" the box.

[jss1961]

While Arctic Systems was bubbling away, I kept my pay/divi below the 40% threshold and the missus took a dividend waver. That led to there being a fair bit of cash in the business account. Post Arctic, the missus is now taking divis again and we've drawn out all the surplus cash that was in there. I operate the bank account with as little cash in it as possible, that way there's less cash available in the business to attract the attention of Hector.

at the moment i'm the only shareholder in my company, i'm thinking of adding my wife as a shareholder as well so she can take some dividends (she actually does some work for the company).
what do i have to do to add her as a shareholder?
can someone point me to the relevant forms?
thanks.

[Fred Bloggs]

You fill in a form from the Companies House website. Easy peasy.

[spig]

Can you only income shift in this way to your wife? I'm not married but am considering doing this with my long term girlfriend who I live with, as long as it wouldn't cause problems with the taxman. I was thinking you could issue shares to anyone, but surely there must be some rules on this to stop people making each of thier kids equal shareholders, or elderly relatives.

If I was able to do this and keep her earnings overall below £40k, does this mean she would have to fill in a self assessment tax return?

[Fred Bloggs]

Fill your (her) boots while you can is my advice.

[jss1961]

You fill in a form from the Companies House website. Easy peasy.

any idea what the form number is?
i looked on companies house site but no idea where or what form to look for..
thanks.

[FarmerPalmer]

any idea what the form number is?
i looked on companies house site but no idea where or what form to look for..
thanks.

http://www.companieshouse.gov.uk/about/pdf/gba6.pdf

says:

10. Must a company notify Companies House when it has made an allotment of shares?
Within one month of the allotment of shares, a company must deliver a return of allotment, on Form 88(2), to Companies House. No fee is payable to Companies House.

Which Links to:

http://www.companieshouse.gov.uk/for...Info.shtml#882