Chris Thorpe looks at some of the issues to be aware of when paying dividends to spouses.
When a married couple runs a business together through a limited company, proper tax planning would dictate that both spouses own shares to receive dividends.
Salaries may or may not be paid as well, depending on other income sources, but dividends will inevitably be the main means of profit withdrawal from the company.
Dividends
Alongside the company’s profits and distributable reserves, levels of dividends will ideally be planned around the individual’s other income – in relation to any salary received from the company or by another employer or source.
Salary and pension
The possibility of a salary along with pension contributions is something to consider. The likelihood is
