Help starting out

[Mattbridges]

I originally posted this in the general forum but was told this is a better place to post.

My wife is in the process of setting up a company, the idea is that she will be the Director and I will be an employee of the company.

I would get paid minimum wage.

Is it right that she could draw a wage at the tax threshold level, then draw dividends of the profits after corporation tax on a weekly basis.

Also if I transferred my car over to the company would I be taxed as a company car user - likewise if all the fuel was paid for by the company.

Any suggestions would be greatly received.

[elainec100@cheapaccounting]

Is it right that she could draw a wage at the tax threshold level, then draw dividends of the profits after corporation tax on a weekly basis.

Yes she can do this - there is no law on how often dividends can be paid but I would suggest that weekly would be a pain because of paperwork (board minute, div voucher etc)

Also if I transferred my car over to the company would I be taxed as a company car user - likewise if all the fuel was paid for by the company.

you will be taxed as a benefit in klnd on the car and fuel plus the company wil be liable for class 1 NI on BIK. Not something I would recommend unless there is a good reason for doing so.

But at the risk of repeating (again!) what I have said in another thread:

This is something to discuss and agree with your accountant who will be more aware of your personal situation.

If you do not have an accountant then I would suggest that for a limited company you would need one to complete the accounts and CT600 CT return.

Good luck

[Geoff T]

Is it right that she could draw a wage at the tax threshold level, then draw dividends of the profits after corporation tax on a weekly basis.

Yes she can do this - there is no law on how often dividends can be paid but I would suggest that weekly would be a pain because of paperwork (board minute, div voucher etc)



As I said - best place!:D

- agree with the weekly thing though, pay on monthly basis, makes life easier for book work!

adjust to a monthly pay cycle, and so concentrate more on doing business!