Couple of Q's

[morphman]

I have been using my own Limited company for a little while now, but some questions have just cropped up.

1. My other half is registered as company secretary, but I hold the only share. Therefore I am the only party who can withdraw a dividend. If I transfer a share to the missus, can she withdraw dividends against her tax bracket? She earns a few thousand under 36k, so it would be worth her having a few k per year dividend.

2. Can the company secretary claim expenses? Do I have do fill out a further p11 for her at the end of the year? Can I claim expenses on her behalf to prevent this?

3. Can I get the missus (co.secretary) to drive me to work after my 10,000 miles are up @40p, so she claims the milage for another 10,000 miles @40p? We have 2 cars.

[fiddleabout]

1. She need shares to get a divvi because divvis are for shareholders not office holders. Talk to your accountant about this - I doubt it's difficult to issue but I don't know the procedure.

2. Yes she can claim expenses, get paid a salary, etc. If you don't want the hassle of this then I guess you could claim those expenses as nobody is ever likely to know but strictly speaking you shouldn't. The expenses have to be re-imbursment for some genuine business expenditure though.

3. No. Or yes if you don't mind fiddling the books. You could get caught though.

[planetit]

1) Is it worth having to deal with all the S660 stuff if she’s only going to get a couple of grand? Never had to deal with it myself, but I think you have to be able to say that she is responsible for generating some of the company profit. I felt that it wasn’t worth it for the small tax saving.

[morphman]

Ok, thanks for the replies