Reply to: Ltd company ... things needed??

[Lewis]

Well d'uh... You'd have to charge VAT for one thing...

Only if she is owned by the company. If he personally owns her he could just put her on ebay.

[malvolio]

That tends to be frowned upon in this country, I'm afraid.

Well d'uh... You'd have to charge VAT for one thing...

[EvilWeevil]

presumably i can just sell her (for example)

That tends to be frowned upon in this country, I'm afraid.

[malvolio]

to paraphrase, because it may be regarded as income-shifting when the new finance act (presumably they mean the FBT) happens, and this could potentially result in a retrospective tax bill.

No it can't. End of.

[lambrini_socialist]

It is completely legal, not in any way "off-piste". Who are your accountants? I would advise asking them why they don't advise it. I'd be interested to hear their response

to paraphrase, because it may be regarded as income-shifting when the new finance act (presumably they mean the FBT) happens, and this could potentially result in a retrospective tax bill.

[Cheshire Cat]

It is completely legal, not in any way "off-piste". Who are your accountants? I would advise asking them why they don't advise it. I'd be interested to hear their response because I am not aware of any reasons. HMRC lost the case, end of story. Until they change the law which they have said wont' take effect until next year you are free to do it.

EDIT - always double check your accountants, they are not always right!

WHS, you've effectively been given 1 year carte blanche to take advantage of your spouse's tax allowance. After that, who knows, perhaps they won't even follow through with the law change, but until the start of next tax year, at the very earliest, it's absolutely LEGAL.

[Lewis]

hmm, i'm with one of the big names mentioned frequently on here. i'm still getting up and running, no invoices actually banked yet, so i don't want to go off-piste with my company's financial affairs until i'm feeling more confident...

It is completely legal, not in any way "off-piste". Who are your accountants? I would advise asking them why they don't advise it. I'd be interested to hear their response because I am not aware of any reasons. HMRC lost the case, end of story. Until they change the law which they have said wont' take effect until next year you are free to do it.

EDIT - always double check your accountants, they are not always right!

[lambrini_socialist]

Your accountant is wrong (unless your wife has a £36k+ income). The income shifting rules are not in effect until next year so I'd jump through the loophole until its closed.

i do feel inclined that way, but without accountant support, i'm reluctant...

[Alan @ BroomeAffinity]

Your accountant is wrong (unless your wife has a £36k+ income). The income shifting rules are not in effect until next year so I'd jump through the loophole until its closed.

[lambrini_socialist]

You might consider getting some better-informed accountants then...

hmm, i'm with one of the big names mentioned frequently on here. i'm still getting up and running, no invoices actually banked yet, so i don't want to go off-piste with my company's financial affairs until i'm feeling more confident...

[malvolio]

anyway, just spoke to my accountants, they're not recommending giving shares to spousal units anyway, and as i'm a MyCo n00b i'm not keen on going against their advice.

You might consider getting some better-informed accountants then...

does anyone know if the FBT legislation would apply retrospectively, if enacted?

No it won't. Chances are it won't happen anyway - see my earlier post as to why.

[Cheshire Cat]

as an aside, if the bread-knife is already a higher-rate tax payer, are there any advantages to paying any money "through" her?

[lambrini_socialist]

Fair play. See your point. Saying that if she has absolutely nothing to with the business then what purpose other than tax reasons is she getting shares/dividends for?

Just curious

well i suppose it would be a gift. i can't pay her a salary for all the work she does at home (which supports my business), but it seems reasonable to give her a gift....albeit a gift that pays out regular sums of cold hard cash once a month.

anyway, just spoke to my accountants, they're not recommending giving shares to spousal units anyway, and as i'm a MyCo n00b i'm not keen on going against their advice.

does anyone know if the FBT legislation would apply retrospectively, if enacted?

[skelm]

Fair play. See your point. Saying that if she has absolutely nothing to with the business then what purpose other than tax reasons is she getting shares/dividends for?

Just curious

[lambrini_socialist]

Why throw away 5K tax free though? Get her to file papers, lick stamps whatever ...

well, to be perfectly honest, she's busy enough as it is, and i'd rather do my books myself so there isn't really any work for her.

no disrespect to those who feel differently, but personally i couldn't justify creating a "fake job" for someone purely for the tax advantage.