Not to mention not getting a years state pension NI contribution.
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New Accountant - advises against income splitting
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Originally posted by Chart Accountancy View PostIf she is also a director with no employment contract, there will be no need to justify the level of her salary.Comment
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my accountant has also advised against it he also has advised against giving out dividends saying its risky and safer just to pay the tax on profits after the whole year. Told me apart from the salary leave all income in the accountComment
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Originally posted by Chart Accountancy View PostIf she is also a director with no employment contract, there will be no need to justify the level of her salary. If she is not, then the salary she receives will just need to be justified at a level appropriate for the amount of work she does for the company and at a market rate.
I agree being a director makes it easier to justify a higher salary, but to say you don't have to justify it is just plain wrong.
If you are right then why not make all the children directors and pay them £8k each.
Think you need to re-think this one...Comment
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Originally posted by abu1 View Postmy accountant has also advised against it he also has advised against giving out dividends saying its risky and safer just to pay the tax on profits after the whole year. Told me apart from the salary leave all income in the accountComment
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Originally posted by craigy1874 View Postwow, some seriously dodgy advice being passed around just nowComment
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Originally posted by redman View PostThey basically said that they advise not to do this. She has no other earnings and I was paying minimum earnings to be tax efficientThe greatest trick the devil ever pulled was convincing the world that he didn't existComment
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https://forbeswatson.co.uk/profit-ex...use-tax-abuse/
According to this article, instead of salary, you can pay your spouse directors’ fees. You will need to appoint your wife as a director. This would be the best option for you.Comment
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Originally posted by craigy1874 View PostEh? Don't have to justify the salary? I think you have got that one worryingly wrong.
I agree being a director makes it easier to justify a higher salary, but to say you don't have to justify it is just plain wrong.
They'd have to quantify the proper amount of compensation to compensate a director for the liability they incur by serving in that role. How can they prove it should be less than £11K?
If you pay a spouse director's compensation of £50K or £100K you might have an issue, but then IT, ERNI, and EENI come into play, so no one would do that and they wouldn't be likely to object.
Originally posted by craigy1874 View PostIf you are right then why not make all the children directors and pay them £8k each.Comment
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Originally posted by jmann View Posthttps://forbeswatson.co.uk/profit-ex...use-tax-abuse/
According to this article, instead of salary, you can pay your spouse directors’ fees. You will need to appoint your wife as a director. This MIGHT be the best option for you.Comment
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