No Dividends paid to 2nd share holder-company dissolved now

[ISingh]

Dividends to family members, not your spouse? Oh dear, knew there would be more to this.

Sorry.. What do u mean by that?
There is nothing more or less to this...
Its straight forward...The dividend wasnt paid to the other share holder...
I have explained everything above .. just asking for a good advise explaining the complete situation..
nothing hanky panky here..

[SueEllen]

Sorry.. What do u mean by that?
There is nothing more or less to this...
Its straight forward...The dividend wasnt paid to the other share holder...
I have explained everything above .. just asking for a good advise explaining the complete situation..
nothing hanky panky here..

It's dodgy to do that unless it's clear what the other family member did for you, for you to give them an interest in your company.

So for example if the other shareholder gave you some capital to help set your business up and you gave them shares in return as long as this is clearly recorded in the business records then it's not going to be an issue.

However if the other family member did nothing that you recorded simply because it wasn't legit, and you made them a shareholder then your accountant should ask why. The reason why they should do this is to help protect you if HMRC ever come sniffing as people commonly do this to avoid tax.

Spouses and civil partners are different. It's recognised that partners provide support for each other.

Dividend waivers have been explained by Wanderer so read his posts.

[ISingh]

It's dodgy to do that unless it's clear what the other family member did for you, for you to give them an interest in your company.

So for example if the other shareholder gave you some capital to help set your business up and you gave them shares in return as long as this is clearly recorded in the business records then it's not going to be an issue.

However if the other family member did nothing that you recorded simply because it wasn't legit, and you made them a shareholder then your accountant should ask why. The reason why they should do this is to help protect you if HMRC ever come sniffing as people commonly do this to avoid tax.

Spouses and civil partners are different. It's recognised that partners provide support for each other.

Dividend waivers have been explained by Wanderer so read his posts.

Hi,
The other share holder never gave me any money to start business or anything.. As I mentioned earlier that while creating my co. the person who created the co for me, asked me if I want to appoint another share holder .. I just said ok. do it... so allocated 200 shares to uncle...
My uncle never did anything for the company.. he wasnt involved with it in any way.. I actually shouldnt have appointed him 200 shares... it wasnt needed in anycase... I just wasnt aware how these things work and just said yes to the person who created teh co for me to appoint my uncle as shareholder ..

Now the company has been dissolved.. I paid what ever Corporation tax , VAT etc was calculated....
HMRC dissolved the company .. and never asked me anything .. never came sniffing for anything...

I am just concerned that if I go for visa extension next time.. can UKBA create any issue for me on this? Please advise on this if you can..
Many Thanks
I Singh

[SueEllen]

Hi,
The other share holder never gave me any money to start business or anything.. As I mentioned earlier that while
I am just concerned that if I go for visa extension next time.. can UKBA create any issue for me on this? Please advise on this if you can..
Many Thanks
I Singh

Can't advise as I have never had any need to deal with UKBA.

Do you have a dividend waiver for him?

[northernladuk]

Have a look at the guides to the right and you will see a link for S660. Have a read of this.

You need to get some professional advice in the future and understand it. Claiming ignorance is not a defence.

[Wanderer]

I am just concerned that if I go for visa extension next time.. can UKBA create any issue for me on this? Please advise on this if you can..

No, I don't think they will.

You got paid the whole dividend because your Uncle agreed to waive his right to a dividend so that's perfectly legal. UKBA won't be bothered about auditing your accounts and quibbling about the reasons for dividend waivers (none of their business anyway). All they care about is that you earned the money and paid your tax.

[ISingh]

No, I don't think they will.

You got paid the whole dividend because your Uncle agreed to waive his right to a dividend so that's perfectly legal. UKBA won't be bothered about auditing your accounts and quibbling about the reasons for dividend waivers (none of their business anyway). All they care about is that you earned the money and paid your tax.

Hi Wanderer,
Many Thanks for your response. Yes I paid all the tax for the earnings for which I claimed points to get Tier 1 Visa Extension in the uk. Still I'll talk to my accountant and I think I should get a Dividend Waiver signed by my uncle to be on the safe side..

ISingh

[northernladuk]

Hi Wanderer,
Many Thanks for your response. Yes I paid all the tax for the earnings for which I claimed points to get Tier 1 Visa Extension in the uk. Still I'll talk to my accountant and I think I should get a Dividend Waiver signed by my uncle to be on the safe side..

ISingh

Question is, if you had paid dividends properly will you have got enough points for your visa? I would doubt this so you have used a waiver to manipulate your company and gain advantage. This will stand out like a sore thumb when HMRC come sniffing and if they find this I would hope they would rectify it so causing a problem with your application.

[stek]

No Dividends paid to 2nd share holder-company dissolved now

I can't see an issue, having a foreign partner I can confirm the UKBA are the thickest and most inept of all Gov Depts.

Clueless

[northernladuk]

I can't see an issue, having a foreign partner I can confirm the UKBA are the thickest and most inept of all Gov Depts.

Clueless

Unfortunately this is probably the bottom line