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Director shareholding and future remortgage.
Penelopa.Pitstop
Posts: 1,166 Forumite
Hi all,
I have to re-structure shareholding in our limited company. At the moment it's 50/50, myself and husband. He went to work via umbrella and I have to change ownership structure, so I can pay myself dividends without generating too much tax liability for my husband.
I was initially thinking about going 95/5 but then realised that in case of remortgaging to different bank, it may be better to go 80/20, so my husband is still classed and treated as company director and assessed based on his total income from SA302. Is 20% shareholding in company is what triggers such treatment? That's what I remember from reading mortgage conditions for different companies.
Am I correct, that if we go 95/5 then he will be treated as employee for mortgage purposes and temporary contracts via umbrella won't cut it really? Or can you still use your income from limited company and be treated as director?
In past, we never had problem with getting mortgage from high street bank based on SA302 of both directors and references from accountant.
I have to re-structure shareholding in our limited company. At the moment it's 50/50, myself and husband. He went to work via umbrella and I have to change ownership structure, so I can pay myself dividends without generating too much tax liability for my husband.
I was initially thinking about going 95/5 but then realised that in case of remortgaging to different bank, it may be better to go 80/20, so my husband is still classed and treated as company director and assessed based on his total income from SA302. Is 20% shareholding in company is what triggers such treatment? That's what I remember from reading mortgage conditions for different companies.
Am I correct, that if we go 95/5 then he will be treated as employee for mortgage purposes and temporary contracts via umbrella won't cut it really? Or can you still use your income from limited company and be treated as director?
In past, we never had problem with getting mortgage from high street bank based on SA302 of both directors and references from accountant.
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Not even one reply? So many mortgage brokes here.0
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