Everyone,
I could do with the combined wealth of experience on this board to advise me on the following:
1. What is that latest position with the government’s tinkering, sorry, redrafting of S660 legislation, following Arctic Systems?
2. I am currently 100% ltd company shareholder, but am thinking of reallocating 20% shareholding to my partner, plus providing her a basic salary (£7.5K-ish). In return she will manage all of the company financial affairs, books, returns etc etc. As the business grows, she will take a more proactive role, marketing the business (her background is marketing) with a view to taking on business partners.
Points to note:
1. My partner is currently a higher rate taxpayer. I know there is currently no financial advantage in what I am proposing, however I do have other specific reasons for bringing her in.
2. At some time in the future I may marry.
3. At some time in the future my partner/wife may go part-time in her other job, or cease that job entirely.
Please, no chorus of disapproval from know-alls on the business front (e.g. “you can’t do that, you’ll break HMRC rules!”) or from divorcés on the home front (e.g. “you must be mad, when you split up she’ll take at least 50%!”) etc etc.
What I’m looking for is your objective feedback on my proposed setup, and my chances in view of the fact that legislative redrafting is still underway. I’m trying to stay within current draft legislation which states that “new rules will not apply if there is a "genuine commercial arrangement" and HMRC believes tax reduction is “not the main or one of the main purposes” of the arrangement”.
Ta muchly,
Swamp
I could do with the combined wealth of experience on this board to advise me on the following:
1. What is that latest position with the government’s tinkering, sorry, redrafting of S660 legislation, following Arctic Systems?
2. I am currently 100% ltd company shareholder, but am thinking of reallocating 20% shareholding to my partner, plus providing her a basic salary (£7.5K-ish). In return she will manage all of the company financial affairs, books, returns etc etc. As the business grows, she will take a more proactive role, marketing the business (her background is marketing) with a view to taking on business partners.
Points to note:
1. My partner is currently a higher rate taxpayer. I know there is currently no financial advantage in what I am proposing, however I do have other specific reasons for bringing her in.
2. At some time in the future I may marry.
3. At some time in the future my partner/wife may go part-time in her other job, or cease that job entirely.
Please, no chorus of disapproval from know-alls on the business front (e.g. “you can’t do that, you’ll break HMRC rules!”) or from divorcés on the home front (e.g. “you must be mad, when you split up she’ll take at least 50%!”) etc etc.
What I’m looking for is your objective feedback on my proposed setup, and my chances in view of the fact that legislative redrafting is still underway. I’m trying to stay within current draft legislation which states that “new rules will not apply if there is a "genuine commercial arrangement" and HMRC believes tax reduction is “not the main or one of the main purposes” of the arrangement”.
Ta muchly,
Swamp
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