Drawing a veil over a LTD company

LittleJohn

Hi

I found the following on a website. This is regarding sole directors who run their own limited company.

"Income not taken into account. Where you are assessed to pay £5.00 per week or less and your income is made up not only of PAYE salary but also other income that is not usually taken into account (most usually share dividends for company directors) it is possible to take into account the dividend income that is not usually taken into account. It is very important that any company director obtains legal advice about their position concerning the CSA since this ground is simplicity itself to avoid."

Any offers on how "this ground is simplicity itself to avoid."?

I have heard that you can appoint nominee directors and shareholders, but this seems a bit risky giving away control of a company to people you do not know.

Thanks

LJ

Soubrette

LittleJohn wrote: »

Hi

I found the following on a website. This is regarding sole directors who run their own limited company.

"Income not taken into account. Where you are assessed to pay £5.00 per week or less and your income is made up not only of PAYE salary but also other income that is not usually taken into account (most usually share dividends for company directors) it is possible to take into account the dividend income that is not usually taken into account. It is very important that any company director obtains legal advice about their position concerning the CSA since this ground is simplicity itself to avoid."

Any offers on how "this ground is simplicity itself to avoid."?

I have heard that you can appoint nominee directors and shareholders, but this seems a bit risky giving away control of a company to people you do not know.

Thanks

LJ

I would be interested to know how it can be simplicity itself to avoid too!

If you suddenly have new nominee directors and shareholders - how are you going to extract your income from the Ltd company?

If the shareholders take it and then pay it to you - how does that stand with HMRC, even if the purpose of it is not to avoid tax, it will look like evasion.

Also the CSA have something called deliberate deprivation of income - if you suddenly changed your company set up then wouldn't it look like you were just trying to avoid paying child maintenance?

I'd be interested to know how those two issues could be side stepped - keep us posted

On the question of dividend income, I have been told by the CSA that secondary legislation means for someone who has control over how much salary is paid to themselves - if it found out that a director is indeed taking renumeration in the form of dividends then it does count as income.

(As usual I mean you generally, not you in particular John)

Sou

Cozworth806

Loan accounts or other forms of capital extraction rather than dividends I would suggest OTTOMH

LittleJohn

I think it does look too good to be true.

However I may take it one step further and see what is on offer ...

LJ