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.
- AWeb - download file 147 3
- Charity work 223 11
- Help with HMRC investigation 218 6
- Director Drawings 123 5
- Accounts Software 79 3
- Do I need to report this to SOCA 3,669 38
- Subcontractor and CIS Deductions made by Contractor 253 13
- Managing Employee Expenses 215 7
- HMRC Agents Line 175 3
- Collection or business assets 91 1
- Incorporated when they should not have 256 8
- Company Director In Prison 420 10
- Tax position re this lease? 366 9
- Do I need a smartphone? 713 23
- Is compensation for surrender of a lease subject to VAT 98 2
- Can I take action against my accountant for incompetence? 3,665 70
- IHT 205 partnership and business interests 87 2
- Reasonable excuse for not filing returns....Death? 342 5
- pension paid by company? 331 8
- Why would they want his purchase invoices?? 758 17
- Property exchange - 8-year legal delay following fall-out 673
- Have you staged yet for auto enrolment? 512
- Cancelled 427
- Cancelled 365
- SAGE Payroll Data for Import to MS Dynamics AX 362
- Probiz 335
- Free-standing washing machine - unfurnished lettings 327
- Phishing emails purporting to be from CIPFA? 243
- Is this UK incapacity benefit taxable in UK or Jersey? 215
- Another HMRC computer glitch? 201