Company director dividends payments

[gingerwolf]

Hi all,

At the beginning of this year me and my wife, and my old boss and his wife set up our own company.

We are basically working as an agent for my old employers in Sweden - we find business for them in the UK - and they invoice and deliver the material to the end user giving us a certain commission.

As I have a full time job separate to this and my old boss is retired we set the company up with 2 types of share holder - me and my friend with voting rights but no dividends and our 2 wives with no voting rights and dividend payments. This is legal and means that me and my friend avoid paying lots of extra tax.

As the work needed is minimal at this point we do not actually have any employees as my friend does the work himself for a few hours a week.

Therefore we get moneys paid every month and our only outgoings are small expenses and the dividend payments to our wives.

When I apply for ILR for my wife in October what evidence will we need to show for this income? Basically all we have are the company bank statements showing the money been paid out of the account and then the money been received in my wives account.

We have not had to do any self assessment tax returns etc as it is a new business and this will still be the case in October, and do not need to be VAT registered at this point as we earn commission only and less than £80k. We are of course on company house as a Ltd. company.

Stew