change ownership

[cloudnineents]

hi there i currently work in the army and ive just started a new popcorn and candy floss machine hire business for some extra cash and it has taken off big time turning over around £500+ a month.
my question is, i have been told by my father in law that i should transfer the business over to my wife to avoid having to pay higher tax as i am on £30,000 with my army job, if this is the case how do i go about doing it
any help much appreciated

Tom

 

[kulture]

I would go talk to an accountant and consider setting up a Ltd Company. Not just for tax purposes, but also for the limited liability bit.

 

[cloudnineents]

I already have register as a limited company thats why im asking if i need to change it over to my wife's name as she does not work at the moment
many thanks

 

[Paul_Rosser]

You don't need to transfer the business, you can simply give your wife some shares in the business and then she can take dividends.

It would probably be best to create a new share class for your wife as then she can take different dividends to you. You can then retain your shares/directorship without having to take anything out of the company.

You would also want to pay your wife a basic (tax free) salary, but as Kulture said you should go and see an accountant as they will be able to offer much more tailored advice.