I'm in the process of issuing my wife a 49% share of MyCo. As I was doing this I googled some sites to check on the exposure this gives me to HMRS and check on the legislation etc.
Obviously I want to stay off their radar for ever and appreciate there is nothing illegal in doing this - my motivation is to reduce the amount of tax due and I should be able to use about £20k of my wife's allowance.
What I was wondering about was the actual mechanic of paying dividends in this way. I have a friend who operates his Ltd in this way but his wife doesn't work at all. Currently I pay dividends in a joint account we both share but he has usggested that I will need to set up 2 accounts that can only be accessed by myself and my wife and pay dididends in the correct split into these accounts. Obviously we would then move the money back into the joint account.
This sounds to me like I would then be simply routing the money back into the same place to avoid tax. Which of course I am doing; in attempting to reduce the amount of tax I pay I am therefore avoiding paying it.
Does anyone else who pays dividends to their wife have this kind of setup ? Could we do it with 2 savings accounts and bounce the money that way ?
I uinderstand the way the shre issue and split works (gifting of shares etc.) I just didn't realise I needed to do it in any particular way.
Thanks in advance.
Obviously I want to stay off their radar for ever and appreciate there is nothing illegal in doing this - my motivation is to reduce the amount of tax due and I should be able to use about £20k of my wife's allowance.
What I was wondering about was the actual mechanic of paying dividends in this way. I have a friend who operates his Ltd in this way but his wife doesn't work at all. Currently I pay dividends in a joint account we both share but he has usggested that I will need to set up 2 accounts that can only be accessed by myself and my wife and pay dididends in the correct split into these accounts. Obviously we would then move the money back into the joint account.
This sounds to me like I would then be simply routing the money back into the same place to avoid tax. Which of course I am doing; in attempting to reduce the amount of tax I pay I am therefore avoiding paying it.
Does anyone else who pays dividends to their wife have this kind of setup ? Could we do it with 2 savings accounts and bounce the money that way ?
I uinderstand the way the shre issue and split works (gifting of shares etc.) I just didn't realise I needed to do it in any particular way.
Thanks in advance.
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