If she is not involved, contributions will not be made “wholly and exclusively” for the purposes of the company’s trade. Whether or not she is involved in the business, your wife may make personal contributions to a pension scheme and claim tax relief against certain types of income, although not dividend income.
Who are the directors of a limited company?
My client is an IT contractor with a limited company. He owns 50% of the shares and so does his wife. They are both directors of the company, and each take a £641 per month salary. They have separated, and plan to divorce in the not too distant future.
Can a wife work in a limited company?
“Yes, you can, but it’s advisable to make sure that your wife actually does some work in the company, such as answering the phone and opening mail, otherwise this could be challenged by HMRC.
How does divorce affect husband-wife limited company?
He owns 50% of the shares and so does his wife. They are both directors of the company, and each take a £641 per month salary. They have separated, and plan to divorce in the not too distant future. The husband wishes his wife (who does not contribute any income to the limited company) to be removed as director and shareholder.
She might also receive a shareholding in the business (perhaps in the manner of non-voting shares) or you may be required to buy her interest over a number of years. The safest option is not to involve your wife to this extent, distance your spouse from the business.
Is it safe to involve my wife in my business?
The safest option is not to involve your wife to this extent, distance your spouse from the business. You should at the very least consider a prenuptial agreement confirming that your bride-to-be will make no claim on the company.
Which is the best consulting company for small businesses?
Eulciea Consulting is a full-suite business consulting and management firm, providing clients with all-round, hands-on support in building brands, businesses and shareholder value. Eucliea is a strategy consulting company started in 2013 that helps small and mid-sized company’s improve their performance.
Can a company director be paid as a consultant for work?
Although like the others unsure why he may wish to do this. Only proviso is that any payments he receives in respect of actually running the company will be directors fees and therefore employment income. It would be recommended that he therefore also pays himself a separate directors fee or risk challenge by HMRC further down the line.
