Investing money from company for kids

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

THEPUMA replied

26 July 2010, 11:53
Originally posted by Platypus View Post

Put the kids on the payroll (summer jobs?) pay them approx £5k per tax year, means no employers' NI for you and no tax or NI for them (assuming they have no other sources of income). However: make sure they do some work to justify their being paid, and make sure the money goes to them and stays with them (i.e. it does not accidentally end up in your back account = tax evasion).

Making them shareholders and paying them dividends is a possibility, albeit there are complications as they will become shareholders with all the intrinsic rights that entails.

If you are a trusting family it can work though.

Puma
Leave a comment:
Platypus replied

26 July 2010, 11:50
Originally posted by chrisl View Post

If i have a limited company earning over £100k per year, is there anything i can do with this money to support my kids so it doesnt have to go to me as income.

My kids will be going to university soon and i want to support them in their studies.

So i was just wondering if anyone knows of any tax saving options or tips to get the money out of the limited company to them without it going via my own income first?

Put the kids on the payroll (summer jobs?) pay them approx £5k per tax year, means no employers' NI for you and no tax or NI for them (assuming they have no other sources of income). However: make sure they do some work to justify their being paid, and make sure the money goes to them and stays with them (i.e. it does not accidentally end up in your back account = tax evasion).
Leave a comment:
Scrag Meister replied

26 July 2010, 11:43
Originally posted by chrisl View Post

If i have a limited company earning over £100k per year, is there anything i can do with this money to support my kids so it doesnt have to go to me as income.

My kids will be going to university soon and i want to support them in their studies.

So i was just wondering if anyone knows of any tax saving options or tips to get the money out of the limited company to them without it going via my own income first?

And then they give it straight back to you once they have it, what a great idea, wish I'd thought of that!
Leave a comment:
chrisl started a topic Investing money from company for kids

26 July 2010, 11:24
Investing money from company for kids

If i have a limited company earning over £100k per year, is there anything i can do with this money to support my kids so it doesnt have to go to me as income.

My kids will be going to university soon and i want to support them in their studies.

So i was just wondering if anyone knows of any tax saving options or tips to get the money out of the limited company to them without it going via my own income first?
Tags: None