Divi-waiver / s660

[SailorSam]

Thanks for your reply Wanderer.

We would be happy to keep the divi small enough that it is never more than 50%. I got lost reading the detail of the Buck case which is why I turned to this forum. But my basic understanding of the case was that MrB earnt the money and Mrs B benefitted which is not the same in our case.

[northernladuk]

If we really wanted to dodge tax we'd declare husband outside ir35, buy the insurance and sit back. Something tells me we wouldn't be the first people to do that....

So you are inside IR35?

[Wanderer]

Both are fee earners, his contract is inside IR35 and hers is not.

So you are inside IR35?

KUATB lad

[northernladuk]

KUATB lad

Good point. I will take that one.

[northernladuk]

If we really wanted to dodge tax we'd declare husband outside ir35, buy the insurance and sit back. Something tells me we wouldn't be the first people to do that....

Doesn't change the point that waiver to avoid tax isn't a good idea.

[eek]

Doesn't change the point that waiver to avoid tax isn't a good idea.

No one has mentioned the ir35 escape clause. Take the IR35 contract income and pay it directly into his pension fund and use wifey's contract dividends to live on.

[malvolio]

No one has mentioned the ir35 escape clause. Take the IR35 contract income and pay it directly into his pension fund and use wifey's contract dividends to live on.

Nah, they're looking to avoid paying some tax (well, NICs to be precise), not working out how not to pay any...

[eek]

Nah, they're looking to avoid paying some tax (well, NICs to be precise), not working out how not to pay any...

You see that is the problem. IR35 is only a problem if you end up subject to it for a long period of time. For a 3-6 month contract being under IR35 really isn't that big a problem if you have savings, you just put the money into a different pot.

[SailorSam]

No one has mentioned the ir35 escape clause. Take the IR35 contract income and pay it directly into his pension fund and use wifey's contract dividends to live on.

That would work for us. As someone posted, ir35 becomes a problem when its long term and if it carries on for a long time we'd end up tying more into a pension than we would like.

Neither us nor our accountant are keen on the waiver idea so we won't do it, but its been useful to explore ideas with the forum.