Allocating Shares to wife who is working elsewhere

**lje** · 16 August 2011, 08:14

Originally posted by sarva81 View Post

Hi,

i'm looking for advice

i recently started a Ltd company and am now contracting, i wish to include my wife as 30% share holder, my wife is working on a permanent role with another UK based company....i checked with known working mate on this, he advised me to fill the form SH01 and also informed that She will also need to complete a personal tax return going forward.

Could you pls advise is that true that needs to complete a personal tax return going forward, If yes, pls clarify why should she do that as she is just a share holder for taking Dividend and not an employee of my Ltd company

Pls advise me

Cheers
Sarva

She will need to fill in a tax return to declare her dividends and to pay extra tax (if any) which results from that. Extra tax would be payable if her earnings plus dividends take her over the 40% tax bracket (around 43k pa).

**eek** · 16 August 2011, 08:57

Originally posted by lje View Post

She will need to fill in a tax return to declare her dividends and to pay extra tax (if any) which results from that. Extra tax would be payable if her earnings plus dividends take her over the 40% tax bracket (around 43k pa).

Not quite. Its

earnings + dividends + dividend tax credit which is approximately 11% of the cash dividend payment (from memory).

So given a salary of £20,000 you could pay a dividend of £20,000 for a total payment of £42,222.

**northernladuk** · 16 August 2011, 09:00

You do have an accountant don't you? They know a little bit about this sort of thing and alot of other very important aspects of your finances. If you haven't got one.... get one.

Allocating Shares to wife who is working elsewhere