Arctic Systems
Discussion
JonRB said:
Nope. But as I said earlier, it will be all over PCG, Shout99, ContractorUK, and all the other sites the moment the ruling is handed down.
None of which are sites I frequent, and life is too short for the accounting specific sites mentioned by Eric (no offence intended, I'm sure they can be very interesting....). If it isn't on PH, grandprix.com or the BBC news I'm afraid it will pass me straight by.Edited by JonRB on Monday 16th July 09:45
I have a meeting with my accountant tomorrow to discuss, amongst other things, the implications of transferring some ltd co shares to my wife and would have liked to be forewarned if the verdict had been handed down.
I'm not a contractor and my company is not that small (8 employees), so maybe the ruling wouldn't be that relevant anyway?
Had a session with my accountant this morning (his last words to me were 'you are more prepared to live in the twilight zone than most of our clients...), and in his opinion the Arctic Systems case is of sufficient importance that if HMRC lose at the House of Lords then there will probably be a change of the relevant law(s) so that they win in the long term. His recommendation was that a prudent (25%) transfer of shares (and associated dividends) to a spouse should remain acceptable, but that larger transfers may well not achieve the desired objective regardless of the AS outcome. I will watch this space with interest.
It's very interesting isn't it?
My personal feeling is that a change in the law (or victory by hmrc) would be completely at odds with the very concept of share ownership and dividends. My accountant's view is that any new rules will apply to Close Companies only and that paying excessive dividends to relatives or close associates will be become tax evasion rather that tax avoidance.
My specific problem is that I am paying myself too much in dividends and want to offload some onto my wife, before my personal tax bill becomes too high.
My personal feeling is that a change in the law (or victory by hmrc) would be completely at odds with the very concept of share ownership and dividends. My accountant's view is that any new rules will apply to Close Companies only and that paying excessive dividends to relatives or close associates will be become tax evasion rather that tax avoidance.
My specific problem is that I am paying myself too much in dividends and want to offload some onto my wife, before my personal tax bill becomes too high.
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