Paperwork required to split dividends with wife

[Greg@CapitalCity]

And if we need to increase the number of shares as well, do we need to pay for them from our personal bank account or that's not required? I've not been asked to pay anything even though the number of shares have increased and the price per share has been kept the same, so wondering where they're coming from...

Notwithstanding the debate on this thread regarding share splitting....your company can issue you new shares - this is where the shares come from. If you have 1 share at the moment, maybe make it 100 now. So you issue yourself with 99 new shares, your share capital increases from £1 to £100, and (usually) your Debtors increases from £1 to £100 to keep the balance sheet balanced (meaning you haven't paid for the shares, and this is money you owe to your company). If you paid nothing into the company bank account when you set it up, you could deposit £100 from your personal bank account....this will reduce Debtors by £100, and increase Cash at Bank by £100....so your balance sheet stays balanced. Make sense?

[mickael28]

So you issue yourself with 99 new shares, your share capital increases from £1 to £100, and (usually) your Debtors increases from £1 to £100 to keep the balance sheet balanced (meaning you haven't paid for the shares, and this is money you owe to your company). If you paid nothing into the company bank account when you set it up, you could deposit £100 from your personal bank account....this will reduce Debtors by £100, and increase Cash at Bank by £100....so your balance sheet stays balanced. Make sense?

Thanks Greg, that's the way I was thinking for not owing anything to the company; but now that you mention that my Debtors (learning about this now) has currently increased from £1 to £100, what could happen if I didn't pay anything back?

Asking because my accountant didn't mention anything about me and my wife paying anything from our personal account to the bank account to settle this (although that's what I'll do anyway), so just wondering.