Tax and training

We act for Mr A who is a training consultant client specialising in the financial services sector. He trades through a limited company.

The company has been established for about nine years and both he and his wife are directors sharing dividends in the ratio of 70:30.

The company’s turnover is approximately £100 000 and after travel office expenses and director’s salary the business makes a net profit before tax of about £70 000. Salary of £12 000 is only paid to Mr A as Mrs A has other part-time PAYE income in the region of £7 000.

As the files have been archived I am not entirely sure but I believe that both husband and wife had subscribed for shares on the formation of the company and both have been directors from start.

Mrs A’s principal role is administrative and financial control although...