Dividend sharing

[lamboman]

Thanks for your replies.

So I guess I can assume its OK for my girlfriend to be setup as a shareholder (and possibly employee) and I can minimize tax without having to worry about S660?

[Weltchy]

Hrm, £35 to incorporate yourself again under a new limited, resign as a company director from existing and transfer your shareholding to her, informing companies house and the taxman of such.

She gets the additional headache of having to run the old company or close it down. Your incorporated under a new company, so off you go. As long as you left no money in the old company, bar tax, you should be fine.

[PAG]

well I'm glad I am 100% shareholder in my company considering I am in the middle of a divorce.

Worth bearing in mind...

TRUE. A friend of mine is similar situation as you, unfortunately he split the company 50:50. Now he is looking to open a new one and close the current one down.

[ratewhore]

well I'm glad I am 100% shareholder in my company considering I am in the middle of a divorce.

Worth bearing in mind...

[PAG]

I do 75:25 with the Mrs who isn't working so its obviously worth a few grand in tax saved but it may come back to bite us all yet. I can't see them not closing this tax avoidance one way or another, it's just if they manage to backdate it and apply penalties.

When is the latest court case / appeal with S660A ?

If your wife did admin work for the comapny and she is director, I don't see HMRC have a case as a tax avoidence. This is because Div paid to her depends on the performance of the company. At least that was my understanding.

[rootsnall]

My accountant adviced me against any split and to keep 100% shares with myself. Now I am kicking myself for not doing it. I should have done 60:40 or 70:30 split.

I do 75:25 with the Mrs who isn't working so its obviously worth a few grand in tax saved but it may come back to bite us all yet. I can't see them not closing this tax avoidance one way or another, it's just if they manage to backdate it and apply penalties.

When is the latest court case / appeal with S660A ?

[PAG]

My accountant adviced me against any split and to keep 100% shares with myself. Now I am kicking myself for not doing it. I should have done 60:40 or 70:30 split.

I think you can issue further share and authorise them to your GF so that the split is 60:40 or 70:30. HTH.

[andy]

My accountant adviced me against any split and to keep 100% shares with myself. Now I am kicking myself for not doing it. I should have done 60:40 or 70:30 split.

[Weltchy]

Be careful about making her a shareholder only, as I think this is one of the reasons that s660 can bite you on the backside. Someone more in the know might be able to correct me regarding this.

I have a 60:40 split with my GF (Uni Student) at the mo with her dividends being paid directly into her bank account, hence trying to demonstrate that its her money, not mine.

Of course, I then ask her for around £1000 a month for housekeeping and bills, and the rest is just extra cash which "she" uses to pay for holidays, presents, posh meals, nice clothes, etc for the two of us.

[PAG]

Hi Darren, I have not split the shares yet - but would probably change it to 50:50 for example.

If your girlfriend works somewhere else then 50:50 is not a good idea. Speak to your accountant, depending on her salary it might be worth doing 70:30 or 80:20 split. She does not have to be an employee but she definietly needs to be either a director oor a shareholder to qualify for Div.

Finally, if she not working even then I woudl not do a 50:50 split, do 60:40 at least that way you are major shareholder and direct your company the way you want, just in case you two don't get on in future.

HTH.

[lamboman]

Hi Darren, I have not split the shares yet - but would probably change it to 50:50 for example.

[Darren@UptonAccountants]

Dividends

What is the share split of your company? Dividends should be paid in proportion to the shareholdings.

[lamboman]

If my girlfriend doesn't work, can I give her a dividend upto the tax threshold (say under £38k) and she will have to pay no tax on it?

If this is OK, does she need to be an employee aswell as a shareholder?

Also, is this a safe way of minimizing tax, or will Gordon still come after us?

Thanks...