Wife as a share holder

[bobterry]

I have been advised that I should include my wife as a share holder in my company. She does not work at present. I have been advised to set here up and give here B shares so that a different level of dividend can be paid to her. Is all of this correct?

 

[MyAccountantOnline]

I have been advised that I should include my wife as a share holder in my company. She does not work at present. I have been advised to set here up and give here B shares so that a different level of dividend can be paid to her. Is all of this correct?

No one can really answer your question without a lot more information.

Did you get the advice from your accountant?

 

[bobterry]

What more information is needed to answer? And yes our in house accountant suggested it.

 

[MyAccountantOnline]

What more information is needed to answer? And yes our in house accountant suggested it.

Income and company details etc that you wouldnt post on a public forum.

You say 'in-house accountant' I would also seek advice from your external accountant/tax advisor.

 

[elaine@cheapaccounting]

If your wife does not work then you could (note - could depending on circs) pay her a salary for work performed in the business e.g. admin and / or a dividend.

As to way you have been advised on B class shares - I can't say on the info provided.

This is best discussed with the person that advised you.

However if they are not a qualified accountant then I suggest getting expert advice.

 

[Hombre]

To go down the route of B class shares seems unduly complicated from the bare details of your opening posts.

If you want to give shares in your company to your wife do so. If you want to just pay her a salary - assuming she works for the company in some capacity - do so, OR indeed combination of both may be more tax efficient, however, without further detail impossible to advise further.

 

[akirk]

There is a lot more flexibility in having more than one class of shares - you can pay dividends at the same rate / pay them only to one class / different rates / etc.

If it makes tax sense to pay your wife as well as you then this could be a good mechanism... however - agree, worth getting advice

Alasdair

 

[Truemanbrown]

Are you going to make your wife a director of the company meaning that can pay her up to £5715 without having to deduct PAYE and NI from her salary nor worry about minimum wage legislation.

 

[Bob]

I have been advised that I should include my wife as a share holder in my company. She does not work at present. I have been advised to set here up and give here B shares so that a different level of dividend can be paid to her. Is all of this correct?

Are you still with A4G? If so, would imagine that they have given your circumstances full consideration before advising you as they have a reputation to maintain .