Anyone use(d) multiple share classes?

[northernladuk]

It seemed like it should be legit but thought it worth asking - with the increasingly vigilant eyes on any sort of 'artificial' mechanism to increase your tax efficiency someone could argue "you're just doing that so you can maximise both your basic tax allowances".

That's generally what the newbies will try. We've seen it a few times on here that they keep it in their back pocket until they know the wifes income for the year. Once they do they can take it right to the limit of the next tax bracket which is an extremely thinly veiled attempt at aggresive avoidance which HMRC certainly don't like as Eek says. I think no one has bothered mentioning that to you as you are a respected poster and know how to do things properly so no need to go through the standard warning blurb.

I'd say keep some evidence of why you are doing it though. I was concerned like you are so would feel much better having the evidence stored in case someone that matters does ask. I used alphabets many years ago when the other half was supply teaching through the LTD so different dividend was based on her income to the LTD and even then I was always a little worried someone would come sniffing so kept all her invoices and the like together just in case. Oh, and separate accounts and the like as well.

Just by having the nouse to ask, just to be sure, means you've already understood it well enough to avoid any the risk I'd say so it's a legitimate situation to use them as they were designed to be used.

[d000hg]

The point of share types is that different share types can get different dividend payments based on some justification or other.

So in your case the Mrs has class A shares, you have class B - she does all the work so she takes a big dividend and you take a tiny percentage (or none depending on whether you want / need to).

Yeah exactly

I can't see any problem because what you will be doing is the reverse of the issue where HMRC get upset which is when the person not contributing gets all the money.

It seemed like it should be legit but thought it worth asking - with the increasingly vigilant eyes on any sort of 'artificial' mechanism to increase your tax efficiency someone could argue "you're just doing that so you can maximise both your basic tax allowances".

[Craig@Clarity]

Nothing untoward with this setup at all. You incorporated with alphabet shares and as such can pay dividends of differing amounts and at different times as you (director(s)) see fit.

[eek]

Our non-contracting company owned by me and the wife has me as uninvolved owner (beyond finances and fixing broken things in the building) and her as full-time manager.

We initially set the Ltd up her owning class A shares and me class B but have so far never issued dividends. Approaching the point we might, and I'm unsure if this is a legitimate way to operate or would be seen as dodgy alphabet scheme - the point being it allows us to take different dividend levels.
Appreciate it's not how most here work, but has anyone got any direct experience or professional advice? We're waiting on feedback from the accountant but they are on holiday skeleton staff

The point of share types is that different share types can get different dividend payments based on some justification or other.

So in your case the Mrs has class A shares, you have class B - she does all the work so she takes a big dividend and you take a tiny percentage (or none depending on whether you want / need to).

I can't see any problem because what you will be doing is the reverse of the issue where HMRC get upset which is when the person not contributing gets all the money.

[d000hg]

Our non-contracting company owned by me and the wife has me as uninvolved owner (beyond finances and fixing broken things in the building) and her as full-time manager.

We initially set the Ltd up her owning class A shares and me class B but have so far never issued dividends. Approaching the point we might, and I'm unsure if this is a legitimate way to operate or would be seen as dodgy alphabet scheme - the point being it allows us to take different dividend levels.
Appreciate it's not how most here work, but has anyone got any direct experience or professional advice? We're waiting on feedback from the accountant but they are on holiday skeleton staff