I have recently registered a limited company from which I will undertake consulting - both myself and my wife are the sole directors and shareholders. I will do the consulting and my wife will do the books (she is an accountant) and file all the relevant documents with companies house.
I have income from other sources (mostly from a pension) which means I don't actually need to take any money out of the company. We have most of our investments in my wife's name so she has income (dividends and interest) but no 'earned' income. Given current income sources, there is no point in the future when I will not be a higher rate taxpayer.
Consulting income through the limited company will be around 300k per year so my challenge is how to extract the money from the company as tax efficiently as possible. I may decide to consult for 1-3 years.
I have the following questions:
1. Can I pay my wife a salary if I do not pay myself anything?
2. Would we fall foul of the tax authorities if the company paid a significant sum each into a pension scheme (c. 75-100k)?
3. Can I invest via the company in an EIS?
What else should I be thinking about?
I have just engaged a third party tax advisor but would like some feedback so I can have an educated first discussion with them.
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