Tax no remuneration - HMRC reaction?

[Cap_Scarlet]

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?

[SteLacca]

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 (https://publications.parliament.uk/pa/ld200607/ldjudgmt/jd070725/jones%20-1.htm) for some pointers.