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Where Taxpayers and Advisers Meet

Paying into a New Ltd Company

mamamia
Posts:1
Joined:Fri Jan 29, 2021 2:54 pm
Paying into a New Ltd Company

Postby mamamia » Fri Jan 29, 2021 3:15 pm

Hello,
After months of reading and lurking I have finally signed up to this great forum :D
I have a question and it may seem a rather strange one. I'm not even sure if it's in the correct forum to be honest.

My wife has a Ltd company and business has gone very quiet recently. So I was considering paying a set amount every month into the business account from my personal account. In theory she would be getting paid for carrying out work around the house, general upkeep etc

In turn she would take out the bare minimum as a salary and not pay any NI or tax.

Would this be okay? I'm PAYE and have no interest in her business apart from I want to keep it going and not let her get too down about it.

Look forward to hearing from you all :)

bd6759
Posts:3586
Joined:Sat Feb 01, 2014 3:26 pm

Re: Paying into a New Ltd Company

Postby bd6759 » Fri Jan 29, 2021 6:17 pm

Why do you want to give the money to the company? Why not give it to your wife direct?

What is it you think doing this will achieve?

Incredulum
Posts:2772
Joined:Thu Dec 03, 2009 5:35 pm

Re: Paying into a New Ltd Company

Postby Incredulum » Sun Feb 14, 2021 8:41 pm

There is absolutely no problem in doing what you suggest if you really think it will make her happier.

BUT, you're (probably) giving the company taxable income, which is giving rise to a tax charge. Much cheaper just to give her the cash rather than giving it to her company!


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