Dividend Waiver & CSA
Company wishes to pay Dividend to 5 family members all equal shareholders.
Dividend will put 2 shareholders into higher rate taxes & remaining 3 will remain basic rate taxpayers.
The 2 shareholders who will go into higher rate taxes have discussed possibility of waiving right to Dividend to avoid higher rates. This however is open to challenge under settlement legislation as the shareholders are all connected & the non waiving shareholders will pay less tax on any dividend than the waiving shareholders.
A 3rd shareholder who will remain basic rate taxpayer irrespective of receipt of dividend has also put forward the notion that he does not want the dividend as this will,affect a CSA assessmsnt he has to pay for maintenance.
I am currently looking into CSA assessments but from what I can see to date any dividend income which he receives will be brought into his maintenance calculation as he & connected person have control over the payment of dividends.
Can anyone point me in direction of how CSA treat Dividend payments in assessments of maintenance payments?
Also waiving dividend to get round maintenance assessment is morally questionable however has anyone come accross use of a waiver in this circumstance.
- simple one...capitalisation of legal fees on purchase of business 144 4
- CIC Company 519 7
- Have I dropped a major clanger? 1,335 21
- VAT online filing exemptions 282 4
- Has anyone read the implications of the Lisbon treaty? 865 18
- NALS Accountants Report 113 1
- Do I need to report this to SOCA 3,478 35
- Legal title not in the company name 285 10
- Dividend dates 571 10
- Sole properietor 192 4
- transitioning payroll 248 8
- dividend proposals 125 2
- How to reclaim VAT that was missed off previous invoices? 243 2
- Deduction from Salary 306 8
- PPR exemption - can it be due on a bigger area than 0.5 hectares? 207 2
- Can I take action against my accountant for incompetence? 2,741 60
- Child Tax Credits - date of cessation of qualifying young person 95 2
- VAT on sales net of CIS suffered 440 10
- ACCA Cert/Dip in IFRS 163 2
- 12 Pay Problems 258 3
- Property exchange - 8-year legal delay following fall-out 624
- Cancelled 364
- SAGE Payroll Data for Import to MS Dynamics AX 342
- Cancelled 312
- Have you staged yet for auto enrolment? 283
- Probiz 274
- Free-standing washing machine - unfurnished lettings 232
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 231
- Phishing emails purporting to be from CIPFA? 204
- Is this UK incapacity benefit taxable in UK or Jersey? 176