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.
- Can an owner hold company money 302 6
- Account and Taxable Profit 293 17
- Accounting for corporation tax 212 6
- Class 2 NIC 263 5
- Probate services 427 9
- Is self-employment "another job" for PAYE 382 7
- Is Xero payroll as rubbish as I suspect it is? 1,704 37
- Vat payable on van 146 1
- Bookkeeping Rate of Pay 2,829 42
- Invoices raised after company dissolution 242 7
- Community Faux Pas 931 26
- Cash gift from India 138 1
- Is cloud accounting actually pretty pants? 2,310 40
- Windows10 190 4
- Taxi Drivers Cost of Sale 624 24
- Digita Accounts Production Advanced - general perception 474 25
- A thursday afternoon muse 238 2
- Barrister "M25 Patch"? 392 6
- Is HMRC Basic Tools basically wrong? 872 5
- Unusual marketing methods for accountants 797 14
- ACCA Shenanigans subject of EDM 835
- Benchmark accounting software 691
- Members in Public Practice 515
- Sole trader registering for the first time 328
- Oplex Careers CPD 321
- What are HMRC implying? 305
- VAT 258
- My own & spouse's Irish returns & ROS 248
- Payroll manager and the cloud 218
- Is the APN valid 196