Hi guys,
I've read a few threads on the topic on this forum, but I still have a question on dividends and shared shareholding.
A bit of context:
Both my wife and I have a job whose salary is above the personal allowance and therefore subject to the traditional income tax.
I've now also started a second business as contractor, for which I've created a LTD.
I am now exploring the idea of making my wife a shareholder.
Should I want to pay her £20K dividends a year, would she pay the basic 7.5% dividend tax or would that cumulate on top of her income?
Has anyone found himself in a similar situation? What was your decision? Any recommendation?
Thanks!
I've read a few threads on the topic on this forum, but I still have a question on dividends and shared shareholding.
A bit of context:
Both my wife and I have a job whose salary is above the personal allowance and therefore subject to the traditional income tax.
I've now also started a second business as contractor, for which I've created a LTD.
I am now exploring the idea of making my wife a shareholder.
Should I want to pay her £20K dividends a year, would she pay the basic 7.5% dividend tax or would that cumulate on top of her income?
Has anyone found himself in a similar situation? What was your decision? Any recommendation?
Thanks!
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