Limited Company Income (Salary / Dividends)

sanjaym · Post by **sanjaym** » Tue Jan 25, 2011 7:11 pm

Hello,

I would like to plan for my next years Tier 1 renewal. Can somebody advice if the following will be considered as income.

I want to set up a Limited Company, and
- put my spouce as 50% share holder
- take small portion as salary and the remaining as company dividends. Salary and Dividends will be paid to my wife as aslo.
- dividends will be paid as profits and by paying 20% corporation tax

Will the salary and DIVIDENDS both be considered as my income.

Regards
Sanjay

Post by **John** » Tue Jan 25, 2011 9:22 pm

Your salary and your dividends will be considered your income .... your wife's salary and her dividends will of course not be considered part of your income.

sanjaym · Post by **sanjaym** » Tue Jan 25, 2011 9:36 pm

So I should not make my wife as part of the company.

Should I pay myself dividends.

Is it ok if I take just 1000 as salary and the remaining as dividends.

Thanks John.

Regards
Sanjay

Post by **John** » Tue Jan 25, 2011 9:43 pm

Â£1000 salary .... per what? Month? Year? Or what?

Your wife? Will she actually be dong any work for the company? Earning money for the company?

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Limited Company Income (Salary / Dividends)

Limited Company Income (Salary / Dividends)