Appointing wife as a share holder?

[FiveStars]

I am planning to appoint my wife as a shareholder (50/5) in my business and was wondering what sort of paperwork will it involve later on. My accountant only deals with One Director filing and everything else etc for a limited company hence the question. Would I need accounting services to deal with any HMRC or limited company filing etc?

Thanks

[northernladuk]

I presume you are appointing her purely as a tax vehicle?
Will you will still be a one director company? Just with more shareholders?
I don't understand the question. Would it not be prudent to do a bit more research when embarking on a potentially risky path (arguable of course)?

Here is a search in the Accounting Section
https://www.google.co.uk/search?q=wi...hrome&ie=UTF-8

and here is the same in Business Section.

https://www.google.co.uk/search?q=wi...s-contracts%2F

I would have done a single search for all the forums but using the terms 'Wife share' with General included might not have produced the results you were after.

[FiveStars]

I presume you are appointing her purely as a tax vehicle?
Will you will still be a one director company? Just with more shareholders?
I don't understand the question. Would it not be prudent to do a bit more research when embarking on a potentially risky path (arguable of course)?

Here is a search in the Accounting Section
https://www.google.co.uk/search?q=wi...hrome&ie=UTF-8

and here is the same in Business Section.

https://www.google.co.uk/search?q=wi...s-contracts%2F

I would have done a single search for all the forums but using the terms 'Wife share' with General included might not have produced the results you were after.

She is currently not working so would be able to utilise her tax allowance in this way which will be advantegous for tax purposes.

It will still be a one directory company and she will not be an employee...just a share holder.

I have made searches and didn't find the answer I was looking for hence the thread.

[northernladuk]

She is currently not working so would be able to utilise her tax allowance in this way which will be advantegous for tax purposes.

It will still be a one directory company and she will not be an employee...just a share holder.

I have made searches and didn't find the answer I was looking for hence the thread.

Ok I don't know what you mean about your accountant. If he is your accountant he should do all this for you but never had an extra shareholder so maybe someone else can comment...

Just be aware that swapping share values could be a red flag to HMRC so changing it while she isn't working and then changing it again in the near future is going to flag that you could possible be using some aggressive tax avoidance method (which you are).

[FiveStars]

Just be aware that swapping share values could be a red flag to HMRC so changing it while she isn't working and then changing it again in the near future is going to flag that you could possible be using some aggressive tax avoidance method (which you are).

Okay thanks for that. I am not trying to avoid tax but where possible trying to minimise it by utilising tax free allowance. I am sure there are plenty who will have their wives as share holder appointed.

The company is only two weeks old at very early stages at the moment.

[malvolio]

Okay thanks for that. I am not trying to avoid tax but where possible trying to minimise it by utilising tax free allowance. I am sure there are plenty who will have their wives as share holder appointed.

The company is only two weeks old at very early stages at the moment.

Just be sure that she gets full shares with voting rights the same as yours. There's nothing wrong with doing it (google Arctic Systems) but you still need to be wary of "bounteous" arrangements.

[northernladuk]

Although the Arctic case has shown shares to a spouse are not a problem and quite above board I don't think it is opening the doors to using your spouse as a tax mule as and when you see fit. Surely that would fall squarely into a contrived arrangement not to pay tax in the short term.

Would be interesting to know if HMRC would be bothered.