You summed it up in your first sentence. I'm trying to shortcut it. I should know better really.
I had it in my head that I would have to increase my total dividends for the year so just added on the tax. But now you point it out, it seems obvious.
I missed that. So saving is in fact £101 + £27 = £128.
So why is a salary of £8,632 always used. Am i missing something else?
I have read this part already, and have to admit that it confused me even more.
So, here is where i should add the following:
Although she is director of the UK Co, any decisions, meetings etc are taken in her home country. So non of the work is performed in the UK. Which is why i believe it is not taxable in the UK.
I might try and give HMRC a call and ask them for their opinion
Yes, what i should have said is that it has always been loss making, and that the liabilities of the company are far greater than the assets.
But i can confirm that C is not UK resident. This was actually my main cause for confusion. I couldn't see why she would be taxed in the UK. If anything she will be taxed in her home country. But then i thought that maybe the sale of UK shares might cause it to be taxable in the UK.
I couldn't see any other reason their current accountant would say it might be taxable.
I also considered this. I believe their reason for the transfer of shares is to allocate the shareholding according to A, B or C's value to the company which has changed since incorporation. However i need to clarify this point with them.
Also it is arguable that the shares are not undervalued as the company is loss making and therefore they are transferred at nominal value.
Maximum salary intended will be £8,424 in any situation, in order to avoid NI contributions.
If he were to make payments into a pension personally he would take the additional money needed via dividend.
This would push him above the BRB but since he pays the same amount into a pension the BRB will be extended.
No NI for employer or employee as its below the limit. But i understand where you are coming from as if he personally wanted to put more than the £8,424 into the pension he would have to increase his salary.
Interesting regarding Quantum though
Law firms tend to do that...