Now that the 660A appeal ( look at www.pcg.org.uk ) has been lost what are people intending to do with their Ltd Co share setup. My Mrs has a 25% share and I'd like to just take those shares back into my name but apparently its not that easy. The easiest solution sounds to be to close your Co down and start another but I am in mid contract and don't want to follow that route for various reasons. Any ideas ?
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Re:Sue?
Look back at the advice you got when you first set up your company. What was the share structure at the start and who advised you to do it that way? -
Re: Re:Sue?
Just why do you think changes to the current structure will make any difference to liabilities incurred in the past.
I know nowt about this which I why I'd ask my accountant rather than post a question here. Having said that MyCo was set up with 100 £1 shares and ony 2 are issued so I'd expect to be able to issue and buy the other 98 for £98 if I wanted.
I seriously doubt that there is any quick-fix to this problem. We'll likely have to wait and see what advice appears in the coming months.Comment
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Re: Re:Sue?
BTW - nice to see that the PCG are still as much use as a chocolate teapot. Current front page...
The Arctic Systems appeal was heard at the High Court by Mr Justice Park from 16 to 18 March 2005. It is expected that judgment will be given within six to eight weeks.Comment
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Re: Re:Sue?
I don't think changing the share structure will avoid any past tax issues but maybe avoid future ones !? Saying that if next years tax return isn't failing to meet 660A ( so isn't picked up in any review of returns ) I am thinking there is less chance I'll get reviewed for the past 6 years. My potential bill isn't too bad at the moment so I'd also like to put a cap on it also. I'm thinking there will be a real issue in the next few months when we have to fill in our personal tax returns ie. do you identify the spouse income or not !?
PCG website had an up to date report yesterday !?Comment
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Re: Re:Sue?
You've had this problem before fiddle. When you look at the PCG front page you see an old one. When in reality it has been saying "Geoff and Diana Jones of Arctic Systems have lost their landmark Section 660A appeal, which was heard by Mr Justice Park at the High Court in March and supported by PCG." since the result came out a few days ago. Not sure it's fair to blaime the PCG for this.BTW - nice to see that the PCG are still as much use as a chocolate teapot. Current front page...Comment
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You don't need to change.
Why get your wifes shares (she can just gift them to you by the way).
All you need to do (assuming you accept that S660A (2) applies in your case) is to report her dividend income on your tax return, not hers.Comment
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Re: You don't need to change.
I have been told its not as simple as gifting them as they have a value ( ie. they've been paying ridiculously good dividends ). My accountant said it would involve form filling ( whether gifted or bought from my wife ) that may be a 'come and get me' indicator to the IR. I am wary of the reporting on my tax return for the same 'come and get me' reasons. He told me this last year but I guess I'll be asking the same questions soonish. My accountant is very by the book compared to others I've dealt with so I'm just canvassing for other opinions. The judgement appears pretty clear cut to me in that if your wife is not fee earning for the Ltd Co then you are caught by S660A.Comment
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Re: You don't need to change.
Yes I think it is a bit tricky to control caching (or rather set a time limit to it) properly. Must be some other not-very avid PCG site readers in the evil empire I guess. A quick refresh shows the current page. As I already know the story I suppose it's not worth reading it anyway though.You've had this problem before fiddle. When you look at the PCG front page you see an old one.Comment
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Re: You don't need to change.
I think it's form 48 you need to fill in. From the point of view of tax returns - assuming she doesn't gift them to you - you *should* put in in the trust and income page (and I suspect that might be a bit of a flag waver).; However you are almost certainly OK just adding it to your divis. Based on the fact that the IR say words to the effect of "treat trhe income as the settlors".
I really wouldn't worry about raising a flag. If the IR are going to come looking for people they think this applies to then you'll be getting the knock along with everyone else. It is absolutely trivial for them to find you. It'll just be an aspect enquiry to start and then they'll say "ooh about all these divis".Comment
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