Paying partner

Emthi

Hi all

I posted this thread on Acc. web

How do you all feel that can we pay the partner who has no role or a tiny part in the business? Let me put this other way around. I am paying my wife a salary of £5720 PLUS a dividend of £38,155 (34,339+3,816). Do you feel that the dividend I pay is reasonable or do I have to reduce it?

Thanks

T.C.

This is a very dodgy area. Essentially a partner (as in the wife/husband sense) must only receive payment for the work they do. You would have to prove the work undertaken in an enquiry. I would be very careful with this one. Seek professional help!

anniem

t.c. wrote: »

this is a very dodgy area. Essentially a partner (as in the wife/husband sense) must only receive payment for the work they do. You would have to prove the work undertaken in an enquiry. I would be very careful with this one. Seek professional help!

especially if you are an mp!

deanshepherd

Absolutely no problem whatsoever with the dividends. It is a return on investment.

The salary will need to be justified as THAT is remuneration for work performed.

Emthi

Thanks

Thank you all

CMS

With regards to the Salary, does that count for anyone? For example not just partners but other family members like daughters, sons etc. Do they need to be doing work to get a salary and who would check? HMRC?

Thanks for any advise
CMS

deanshepherd

Yes, yes and yes.

anniem

deanshepherd wrote: »

Yes, yes and yes.

Very succinctly put!