Salary, no problem as longs as reasonable remuneration.
Pension - there are problems - there are restrictions on how much you can put in a pension each tax year (complex rules) as well as a lifetime allowance and a money purchase annual allowance. All of which should be considered.
EIS - your question isn’t very clear. A company can’t make EIS investments, and your investments to your company will not qualify as you and your wife combined own 100% o the share capital (the can be no more than 30%).
Earning 300k per year, there will be tax to pay unfortunately and retaining the cash in the company will only delay the personal tax.
If you wait until there is £1m in the company for example, you will struggle to get your hands on that without paying a lot of tax.
Thank you - that's helpful.
I don't expect to work for more than an additional two years, so we won't accumulate that much!
I am formulating a plan in my head which looks like the following:
1. I will pay my wife for the work she does as accountant and company secretary. c. 12k per annum.
2. Pay pension contributions for both of us up to the maximum allowable.
3. Pay dividends which fully absorb my wife's basic rate income tax band.
4. I assume based on that if I take dividends at the same time I will just have to suck up that I pay at the higher rate.
My question then remains:
What happens if we finish trading after two years and there are undistributed funds in the company? Can we continue to take that as dividends to use my wifes basic rate allowance? Is there another way to get the cash after ceasing trading?