Ltd company, secretary's salary

[d000hg]

True, but you can make ANYONE a shareholder in your LTD company and pay them dividends. They don't have to actually do any work for the company.

You can, but then they own a chunk of your company and you have to pay them dividends whenever you take them yourself, AFAIK... so it's a fairly inflexible system?

Paying a salary is another issue, if you pay a connected person a salary then they should be doing some work for the company. Perhaps your company needs a trusted person to do the admin (including accessing online banking) which you simply couldn't trust to someone else.

Absolutely, paying for genuine work should be a non-issue.

[Wanderer]

According to CUKs article on income tax shifting:

Under the legislation, taxpayers must detail how much income they have ‘foregone’ by making a comparison with how the business would have operated, had all their work been done independently on a fully commercial basis.

Let's not forget that this legislation was a draft that never became law.

[SueEllen]

Let's not forget that this legislation was a draft that never became law.

And with a Tory-based government in it's not likely to.

[Goodmans]

So far i am the whole and sole share holder of the company. So you recommend me to make my wife as shareholder?. Is it ok to make my wife as shareholder in the middle of Financial Year?. When I spoke to my accountant he says that it is not good prictice of issuing new shares, HMRC may consider this as incomeshifting, He told me to open a new company to divide the shares. But few other friends says that it is not a big matter in doing this. I am bit confused. Please advise.

What I am thinking is devide 1 share into 10 shares and issue 4 shares to my wife and I keep 6 shares to my self.

Thanks guys. its been a super help from you guys.

Regards
G

[Wanderer]

So far i am the whole and sole share holder of the company. So you recommend me to make my wife as shareholder?. Is it ok to make my wife as shareholder in the middle of Financial Year?. When I spoke to my accountant he says that it is not good prictice of issuing new shares, HMRC may consider this as incomeshifting, He told me to open a new company to divide the shares. But few other friends says that it is not a big matter in doing this. I am bit confused. Please advise.

Ahh, no one really knows to be honest. I get sick of hearing about what HMRC "don't like". It's irrelevant what they like or don't like, the law is supposed to be the law and it should be clear but unfortunately it's not.

Have a read of this link and see if that clarifies things at at all.

I would be inclined to issue your wife ordinary shares and be done with it. The shares have a nominal value (typically 1 pound each) but she doesn't have to pay this, she can owe it to your LTD. If you want to take greater dividends that her then you need to issue yourself more shares than she has, perhaps 60/40 or whatever or ask your accountant about creating different classes of shares.