I setting up a limited company with my colleague so both directors and 50/50 shareholding split. Straight forwards!
However there is a cliff edge in the tax system where if i have any more income this tax year and the next few years (I have a full time job aswell) we will lose our free childcare hours so I will be much worse off.
I wanted to put myself and my colleague as directors but my colleague and husband as shareholders 50/50.
I've had a look and legislation seems to state this is okay however I will be working for the company and will have no income whether that be salary or shares. Whereas my husband won't be but will receive dividends. Is this okay?
I am a tax accountant so really don't want to be in any grey area with it but never come across this before. Also my colleague does need money out of the business as this is her only job.
maybe a salary for her then 50/50 between me and her and both pull dividends when I'm over the childcare situation? (Income would be great for us though in the meantime but we can live without it)
thanks very much!!