Am I at risk under Section 660a?
It has been suggested that individuals will fall into this category if their partner/spouse owns shares in their company, or receives income or dividends from the company. Based on recent investigations, the Inland Revenue suggests that S660a could apply if:
- Your spouse owns ordinary shares in your company
- The amounts of money you and your spouse bring in to the company are not in proportion to the number of shares you own. (e.g. if your wife owns 50% of the shares, but earns less than 50% of the fees)
- You ever pay dividends
Additional risk factors have been highlighted where shares have been transferred between Director and spouse, and also where the company has negligible capital assets.
Any kind of company could be affected, and therefore it does not have to be service companies, umbrella companies or employment management companies, and this has nothing to do with IR35 status.
This uncertainty is another reason why Alternet Ltd will alleviate anxiety and worry about Tax Regulations. Work through Alternet Ltd and let them take over the administration of your employment remuneration, and relax in the knowledge that you are working in an IR35 and S660a compliant manner.
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