If a small company has one shareholder and a dividend is paid, is there any difference in the amount of corporate or personal tax payable if the shareholder is also a director of the company, or is just the shareholder but not a director?
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No
The fact that the shareholder is also a director is not relevant.
There is no tax on the company and the dividend is not a tax-deductible expense either. The tax is borne by the recipient of the income, ie. the shareholder.
To play Devil's Advocate
If the shareholder is nothing more than that, there can be no possible challenge that the dividend is anything other than a dividend. But as a director - depending on frequency of dividends and other factors - there is a possible risk that HMRC may seek to tax the dividend as earnings.
Frequency is not relevant...
record keeping, paperwork and sufficient reserves are however.
@ Wgreen ... not sure of your angle on this but if the person drawing the dividend is 'the business owner' then they would be a de facto director regardless of whether they have filled out the form. As Andy says though, it still makes no odds as to their rate of tax. Perhaps if you tell us what the actual issue is then we could advise you whether you have a problem or not?
@Steve
Until we know how HMRC are going to react to PA Holdings, I don't think anyone can say with certainty that frequency is not relevant. Proper paperwork may be the most important factor but in the event of a question, I suspect that, eg, monthly dividends of a fixed amount are going to be harder to defend. Remember, it's not HMRC that will make the decision - ultimately it may be the Tribunal, or higher, that will decide on the substance of the payments.
The 'fears' may well be unfounded - I have heard some go so far as saying that there is no chance of HMRC attacking small company dividend arrangements and that they would kick any HMRC challenge into touch. I wish I could be so certain.