Class B shares and Dividends

[LondonManc]

Computer says no:

Unless your significant other is actively involved in the company, don't bother.

[northernladuk]

I am sure you appreciate you aren't the first person to think about this so it's worth searching the forums first. Best bet is to use the Google method.

Type the following in to Google and it will bring back many threads on exactly this topic. As ever on a public forum there are some conflicting options but the consensus seems to be pretty clear.

Class b site:forums.contractoruk.com

[northernladuk]

So just using your partner as a tax mule to avoid paying the right tax? At least you are brazenly honest about what you are trying to do rather than kid yourself there is a business reason. Anyway, good luck with that.

Let's see what your account has to say though.

[Darren at Fox-Bartfield]

I am a sole director of a ltd company, I wish to give £2000 worth of dividend to my partner this year(not married) who is not yet a shareholder. and no more than that as that would be the tax free amount for this year.

If I grant shareholder status to my partner, is there a way I can grant class B shares instead of class a(dividend only approved by director only- I read somewhere that you can classify what class B shares mean in your own company....) ( so not regular dividends )

Would anyone recommend this, or is this skirting the edge of HMRC?

"cough" tax avoidance "cough"

@NLUK style have you asked your accountant?

So setting up a different share of class for the purpose of diverting income, think that would stand out a little. Does your partner carry out any work for the business?

[yy234]

I am a sole director of a ltd company, I wish to give £2000 worth of dividend to my partner this year(not married) who is not yet a shareholder. and no more than that as that would be the tax free amount for this year.

If I grant shareholder status to my partner, is there a way I can grant class B shares instead of class a(dividend only approved by director only- I read somewhere that you can classify what class B shares mean in your own company....) ( so not regular dividends )

Would anyone recommend this, or is this skirting the edge of HMRC?