Company Director

y1993

I'm currently employed and my Boyfriend is self employed but owns 20% shares in a company. A couple of lenders have said they would class him as employed if he owns less than 25%, which he does. Does anyone know if he would have to go PAYE or if they would just use his gross salary that he's on at the moment?

Thrugelmir

To clarify the situation. What's the connection between the Company and your partner. A shareholding in itself means very little.

steeeb

Does he get NI threshold salary and the rest in dividends?

Prothet_of_Doom

Even a director should be on PAYE.
I own 100% shares in a company, and am paid £900 a month via PAYE.
Anything else I take is as Dividend.
I believe that you could also take a directors loan, (I never have) which would be paid back when a dividend is declared. The next self assessment after that would then calculate any tax due on the dividend.

I had no trouble getting a mortgage with 3 years of p60's, Self assessments, and copies of ltd company accounts plus a letter from accountant (which he charged me for)

y1993

He's a director of the company

Prothet_of_Doom

y1993 wrote: »

He's a director of the company

Directors are (or should be) ALSO employees. Therefore he has 3 sources of income

1 PAYE
2 Directors Loan
3 Dividend (which is used to refund 2)

Prothet_of_Doom

y1993 wrote: »

Does anyone know if he would have to go PAYE or if they would just use his gross salary that he's on at the moment?

A gross salary ?

amnblog

Consult a broker before you trip yourselves up here.

Every person who owns or part owns a Ltd Co will have lenders to approach and lenders to avoid. Each case is different.