A client has been advised by others doing the same (!!) to set up a trust fund, pay their children a salary into the trust, and the trust then pays school fees.
Anyone know any more about it?
Not sure how a salary from the company can be justified to HMRC in this situation?
Or am I missing something?
Replies (4)
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I have heard about this. I have nothing to offer, sorry. I'll watch this thread with interest though.
sounds like an RT but the salary bit sounds ????, u can only gift a companies profit. trust can then use the money for whatever. albeit with a few steps missing.
I aim to do the following:
Employ my daughter to model on a company brochure. She will earn fees but I will not pay them to her as she is 7 years old. I will pay them into an accumulation and maintenance trust with education and development as the objects. This trust will pay school fees. There will be tax but limited I think.
Have you thought about putting your house in your company too? Seems to be the idea of 2017.