How to add a company director to my Company

[GreaseOyster]

Hi,

I'd like some advice on how to add a company director. Basically - since HRMC have delayed their decision on Income Shifiting. My accountant suggested that I add my wife as a company director for a short period of time. He's backdated the accounts so that I own 51% of the company (as of year end 2007) and my wife owns the rest. However, he hasn't sent me any forms to fill in to send to companies house.

What do I need to send to Companies house if anything. I'm sure there must be some paper work that is required to show this split in company equity.

Many thanks

G

[FUBAR]

Form 288a http://www.companieshouse.gov.uk/forms/formsOnline...

AFAIK you dont need to state shareholding for Directorship

HTH

[Eric Mc]

Form 288a.

You will need to mention shareholdings when making the next Annual Return - whether on-line or on paper.

Also, you will need to ensure that the correct share allotment forms are suibmitted and any Stamp Duty paid to HMRC if appropriate.

Your accountant should be helping you on this.

Edited by Eric Mc on Monday 1st September 14:03

[GreaseOyster]

Thanks.

WRT Stamp Duty - what would that be on? The value of the company? If so how would it be valued?

[Eric Mc]

There is a flat £5 Stamp Duty fee on the transfer of shares (not the allotment of new shares).

[GreaseOyster]

Thanks Eric.

[dcw@pr]

Eric Mc said:

There is a flat £5 Stamp Duty fee on the transfer of shares (not the allotment of new shares).

not any more eric!

[Eric Mc]

When was it abolished? I obviously haven't had to do one for a while.

[dcw@pr]

not sure, but when I did a transfer a few months ago, two weeks later the cheques came back in the post with a note saying there wasn't a fee any more

[Alex]

Your wife does not need to be a director to be a shareholder.

[Eric Mc]

dcw@pr said:

not sure, but when I did a transfer a few months ago, two weeks later the cheques came back in the post with a note saying there wasn't a fee any more

Thanks for the clarification. Obviously fairly recent then.

The general advice these days is that it is now sensible policy to make a spouse a "Director" or some sort of officer of the company in order to justify any dividends that might be paid to them. Although it should not really be a consideration when deciding to pay dividends, the Revenue atitude to people receiving a dividend for no input of any sort into their spouse's company (apart from owning a £1 share) is certainly tougher than it used to be

(The Arctic Systems Ltd case springs to mind - which the Revenue eventually lost but which indicates how they are now thinking)