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Season ticket iR35

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    #11
    Originally posted by GhostofTarbera View Post
    His other plan (if moved to umbrella) is to stop taking dividends himself but his wife (book keeper) to max out each year until he returns to an outside position




    Sent from my iPhone using Contractor UK Forum
    Un-possible.

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      #12
      Originally posted by GhostofTarbera View Post
      His other plan (if moved to umbrella) is to stop taking dividends himself but his wife (book keeper) to max out each year until he returns to an outside position
      he's going to give his wife 100% of the shares??????? That's brave...
      He can still have £2k divis tax free though. And 32.5% is still less than 40%
      See You Next Tuesday

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        #13
        Originally posted by Lance View Post
        he's going to give his wife 100% of the shares??????? That's brave...
        He can still have £2k divis tax free though. And 32.5% is still less than 40%
        He said he can decline his dividends


        Sent from my iPhone using Contractor UK Forum

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          #14
          Originally posted by GhostofTarbera View Post
          He said he can decline his dividends


          Sent from my iPhone using Contractor UK Forum
          There is case law about that - such that I really wouldn't recommend that approach.

          If he is going to do it he needs to use different classes of shares as the best approach.
          merely at clientco for the entertainment

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            #15
            Originally posted by eek View Post
            There is case law about that - such that I really wouldn't recommend that approach.

            If he is going to do it he needs to use different classes of shares as the best approach.
            Alphabet shares are the way to do it without transferring ownership.

            The Arctic Systems test case relied entirely on the shares being equal in all ways. On that basis HMRC could argue that this is income shifting and Arctic Systems is of no relevance.
            See You Next Tuesday

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              #16
              Originally posted by Lance View Post
              Alphabet shares are the way to do it without transferring ownership.

              The Arctic Systems test case relied entirely on the shares being equal in all ways. On that basis HMRC could argue that this is income shifting and Arctic Systems is of no relevance.
              And declining dividends wouldn't be?

              At least share classes have been justified for other reasons.
              merely at clientco for the entertainment

              Comment


                #17
                Originally posted by eek View Post
                And declining dividends wouldn't be?

                At least share classes have been justified for other reasons.
                I wasn't suggesting that at all. Just pointoing out the problem with alphabet shares.
                The correct way would be to sell/gift the exisiting shares. or, oh I don't know, pay some tax on the income.
                Or leave it in the company till the dust settles.
                See You Next Tuesday

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                  #18
                  Anyone not doing their utmost to legally bleed their company dry before shutting it down would be failing in their duties as a director.
                  ...my quagmire of greed....my cesspit of laziness and unfairness....all I am doing is sticking two fingers up at nurses, doctors and other hard working employed professionals...

                  Comment


                    #19
                    Originally posted by GhostofTarbera View Post
                    Mates season ticket is £13.5K (1st class from north Birmingham) just renewed it (outside ir35 / limited company)

                    Also plans to buy £5K avios points now for company flights in next year

                    Also plans to pay remaining 24 months car leasing costs this month in a lump sum

                    I asked him what happens if he needs to work inside ir35/umbrella from next month at RBS

                    His reply was “Finders keepers losers weepers” I’m outside now and can spend my company’s money legally as I wish.

                    Question 1. can he ?

                    If not does everyone need to stop using annual season tickets etc?
                    He may find the car leasing company are not keen on him ending the agreement early. In effect, he's termination the agreement early and there maybe penalty charges. Additionally, this would be classed as an early termination insofar as his credit record is concerned. If he has alreay paid over half of the agreement back, then this would be classed as a voluntary termination.

                    Both statuses could potentially make the interest on any future finance agreements more expensive. Some people may say an ET or VT may mean getting another future lease with the same company more difficult but Im not sure that would be the case and in any event, there are lots of lease companies out there.

                    Otherwise, effectively he's just taking an early draw down from his company to finance this. When he's working under IR35 in the future, he'll be taxed on that basis as I see it.
                    I couldn't give two fornicators! Yes, really!

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