We are hoping to increase my wife's salary substantially in order to increase her pension funding. She is a director of the company and a 50% shareholder. She does the accounts for the business, but her increased salary would be far and above the industry norm for the work she carries out for the company (so my accountant says).
Would this be an issue for revenue considering all income tax etc will be paid?
Thanks for the reply. I would have thought that since it's our business, we have worked hard to build it up over the last 15 years, paying ourselves below the industry norm, that when we have funds built up, we can pay ourselves a decent salary.
Given it's your own company, can you not just pay pension contribution from the company directly to your wife's pension (as an employer contribution) without increasing salary - there isn't a limit to company contributions as far as I am aware
If you give a person more salary
They also pay more tax
Authorities won't object
And if your person has special skills
It should be possible to justify being paid more
Given it's your own company, can you not just pay pension contribution from the company directly to your wife's pension (as an employer contribution) without increasing salary - there isn't a limit to company contributions as far as I am aware
There is; it’s a function of a number of variables, including the employee’s salary.
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