Another point. She doesnt have to do any work to be a shareholder so forget that link.
e.g. Do you have post office/barclays/BT shares? Do they ask you to do any work for them? Exactly.
Shareholding is zero to do with any work you do.
BUT, as someone said S660 comes into play.
I wouldnt do it. Its just too obvious what you're up to.
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Reply to: Appointing mother as Ltd Co shareholder
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Previously on "Appointing mother as Ltd Co shareholder"
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Originally posted by spyman View PostHello all,
I am currently contracting and looking to start up a new company with my mother as a 30% shareholder. She is unemployed and I may ask her to look after my financials and invoicing etc in return for dividends or may just gift them to her because she's lovely.
Is this something the HMRC can chase me for?
Obviously if they were to spy on me and watch her hand me back £x in cash every month then it would look suspect but is there any issue with the above?
Thanks
SM
HMRC have to be very careful not to issue strict guidance on a complex issue such as "tax avoidance and shareholdings". The one thing you can be sure of - the moment they release absolute guidance on any issue, somebody then finds a way around it, using the guidance issued.
Just to illustrate the point. Back in the Summer I was at an employer compliance review for a large client and they had two Inspectors present. I asked both of them for an opinion of whether or not they believe £5 per day is acceptable for a contractor to claim for lunch. One stated yes - for about 28 days and the other stated sure, no problem - for any period up to a year.
Bizarre but true.
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Originally posted by Pondlife View PostIs this guide a little dated now? Have there been any new developments?Last edited by TheCyclingProgrammer; 26 February 2015, 10:23.
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.....
Originally posted by spyman View PostHello all,
I am currently contracting and looking to start up a new company with my mother as a 30% shareholder. She is unemployed and I may ask her to look after my financials and invoicing etc in return for dividends or may just gift them to her because she's lovely.
Is this something the HMRC can chase me for?
Obviously if they were to spy on me and watch her hand me back £x in cash every month then it would look suspect but is there any issue with the above?
Thanks
SM
Leave a comment:
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No
Section 660 - S660 / S660a Advice :: Husband and Wife Tax :: Income Shifting Legislation
Is this guide a little dated now? Have there been any new developments?Last edited by Pondlife; 26 February 2015, 09:12.
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Appointing mother as Ltd Co shareholder
Hello all,
I am currently contracting and looking to start up a new company with my mother as a 30% shareholder. She is unemployed and I may ask her to look after my financials and invoicing etc in return for dividends or may just gift them to her because she's lovely.
Is this something the HMRC can chase me for?
Obviously if they were to spy on me and watch her hand me back £x in cash every month then it would look suspect but is there any issue with the above?
Thanks
SM
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