Reply to: Claimed Dividend Non Payments

[eazy]

What about Settlements legislation?

Settlements legislation
TSEM4355 - Trusts, Settlements and Estates Manual - HMRC internal manual - GOV.UK
In most everyday situations involving gifts, dividends, shares, partnerships, etc. the settlements legislation will not apply. If there is no “bounty” or if the gift to a spouse or civil partner is an outright gift which is not wholly, or substantially, a right to income, then the legislation will not apply.

In this case OP is not married, used dividends against rent, looks like "a right to income"

[SimonMac]

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Hang on, are you saying that you stopped paying her dividends into the joint account and into an account you control to then use that money to pay for commitments she owed you?

If so I wouldn't be worried about fraud, we are now talking about theft

[northernladuk]

I'm sure you know this, but not paying tax on something does not make it tax free, and that it is the individuals responsibility to complete the SA, if required.

It's Drei.. he's starting to make a habit of this type of thing.

[Paralytic]

Saiying that, my partner and I were in the same situation. I got the SA request from HMRC, they did not... so they could have went on getting £100k in dividends all tax free)) but I made them register. Ah well... sucks to play by the rules and do the right thing.

I'm sure you know this, but not paying tax on something does not make it tax free, and that it is the individuals responsibility to complete the SA, if required.

[Drei]

My concwen would be this bit



Were I his ex, my concern would be the use of dividends to pay rent she probably wasn't aware of using her taxable dividend payments. I wouldn't be surprised if the girlfriend should have been doing tax returns and paying 7.5% of dividend tax on money she wasn't aware she was receiving...

It's a brilliant example of the first post not telling the full story (and the real story being far, far worse than the initial post).

I love it how you can missplace dividends ant not declare them and pay the dividend tax)) That reminds me of a contractor I worked a few years back, HMRC never asked him to do SA so he used to pay himself, give Dividednds all without filling in a Self Assessment. This went on for years.

Saiying that, my partner and I were in the same situation. I got the SA request from HMRC, they did not... so they could have went on getting £100k in dividends all tax free)) but I made them register. Ah well... sucks to play by the rules and do the right thing.

[eek]

Plus a nice little payout that I'd feel I'm due for putting up with him else I'll make his life a living hell, including dobbing him in to HMRC. If he's badly run his company meaning I lose some of my divis I'll sue him for the difference and more for mismanaging everything.

But I'm a nice guy really.

My concern would be this bit

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Were I his ex, my concern would be the use of dividends to pay rent she probably wasn't aware of using her taxable dividend payments. I wouldn't be surprised if the girlfriend should have been doing tax returns and paying 7.5% of dividend tax on money she wasn't aware she was receiving...

It's a brilliant example of the first post not telling the full story (and the real story being far, far worse than the initial post).

[northernladuk]

If I was the ex I would be looking for my 25% from all dividends you took out of the company as I’m sure I did not refuse them (not in company minutes etc) + 25% of the MVL if anything left

Plus a nice little payout that I'd feel I'm due for putting up with him else I'll make his life a living hell, including dobbing him in to HMRC. If he's badly run his company meaning I lose some of my divis I'll sue him for the difference and more for mismanaging everything.

But I'm a nice guy really.

[BrilloPad]

You need a solicitor specialising in family matters.

[GhostofTarbera]

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Withdrawls from the account were, except for about a grand or so over the three years in question, made by her (our child was never a shareholder).

This continued until the winding up of my Ltd Company.

Thankfully the overwhelming opinion seems to be what I had hoped - without any unexpected 'yeah buts'.

My books show that the dividends were correctly recorded and demonstrably said monies were made available to her, for her sole use and enjoyment.

Thanks again.

If I was the ex I would be looking for my 25% from all dividends you took out of the company as I’m sure I did not refuse them (not in company minutes etc) + 25% of the MVL if anything left




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[northernladuk]

So you've given an unmarried partner shares? Hope you did it right. The fact you mention your child wasn't a shareholder makes me wonder.

She could dob you in to HMRC if you aren't careful.

[eek]

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

.

so the truth eventually appears in the story - that puts a very different picture on it - robbing Peter to pay yourself isn’t going to go down well when it comes to court especially as a child was involved.

I would suspect you will have calls from child maintenance after you as I think you will have some explaining to do.

[WildGoblin]

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Withdrawls from the account were, except for about a grand or so over the three years in question, made by her (our child was never a shareholder).

This continued until the winding up of my Ltd Company.

Thankfully the overwhelming opinion seems to be what I had hoped - without any unexpected 'yeah buts'.

My books show that the dividends were correctly recorded and demonstrably said monies were made available to her, for her sole use and enjoyment.

Thanks again.

[GhostofTarbera]

Claimed Dividend Non Payments

And you have paid subsequent dividends?

What was her share split

Did you spend you wife’s and child’s dividends from that joint account ?


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[WildGoblin]

Thanks guys,

It really is as it sounds - Bank accounts & paper trail all check out, as no wrong doing has occurred.

Joint Account is my worry but all transactions show me paying in - her taking out.

I may very well be 'over thinking' it and was worried I had not taken into account something fundamental.

Cheers.

[Ploptimus]

As all other stated it should be clearly documented so is not really up for debate.

The thing that sticks out thought to me is the specific mention it was paid to a joint account which encourages me to one of two hypothesis:

• 1 She thinks she can scam you as even if there is proof of paying in, it is to a joint account so she’ll claim she never saw it.
• 2 You told her you were going to add her as a shareholder to take out twice the dividends and pay less tax and she decided to screw you over on the divorce knowing this.