This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax no remuneration - HMRC reaction?

Posts: 25
Joined: Sun Jun 17, 2018 2:59 pm

Tax no remuneration - HMRC reaction?

Postby Cap_Scarlet » Wed Apr 17, 2019 12:23 pm

I have a limited company with two directors, myself and my wife.

I am the fee earner for the company, and my wife is company secretary and accountant.

I don't need to take any earnings from the company as I have sufficient income from other sources, however I am paying my wife and a salary as well as a dividend (we have two classes of shares A & B, I own only A shares and my wife owns both A & B shares - we only paid dividends on the B shares).

Effectively this means that my wife is the only person drawing an income from the company.

Any issues from HMRC perspective?

Posts: 448
Joined: Fri Aug 07, 2015 2:17 pm

Re: Tax no remuneration - HMRC reaction?

Postby SteLacca » Thu Apr 18, 2019 12:06 pm

With regards to the salary paid to your wife, it should be commensurate with the work she does (and so a salary that would be paid at arm's length to a 3rd party) to remove any chance of a successful challenge from HMRC.

Dividends are a slightly different matter, and the devil is in the detail. HMRC don't like arrangements which they view as income shifting. Alphabet shares are a little more robust than, for example, dividend waivers in this regard. However, care still needs to be taken.

You may want to take a look at Arctic Systems ( for some pointers.

Return to “Income Tax”