Can someone claiming DLA be a Ltd company shareholder

Jeremy535897

sdyson31 said:

Jeremy535897 said:

sdyson31 said:

I think i have now better understanding on shareholder and director's responsibilities.

Can my wife be a shareholder in my company? Lets say 50%-75% shareholder? 

After paying cooperate tax, there will be a big chuck of money left in profit which i don't tend to take out because i am paying higher tax on PAYE income.

If i pay the divided to my wife then she will only pay 7.5% tax. She claims DLA, don't know if being a shareholder would have any impact on her benefits

Any thoughts?

 

Your wife will only be able to receive a dividend if she owns shares. The most straightforward way to achieve this is for you to give her some of your shares. That means that she will own them, have voting rights etc.

If the company pays a dividend, you and your wife will receive that dividend in proportion to your shareholdings. Some will therefore be taxed at your marginal rate and some at hers. DLA is not means tested.

Any attempt to achieve more than this (for example by creating a separate class of shares for your wife and only paying a dividend on those shares) may fall foul of anti-avoidance provisions and case law (Arctic Systems case).

    What do i need to do to give some of my shares to my wife? Does she need to be a shareholder? Is there any guide available on transferring shares?

Lots of information here, but you should take professional advice if you are not 100% sure of what you are doing, and if you are having to ask whether your wife needs to be a shareholder to receive a dividend, you are not going to be 100% sure of what you are doing.