If you add your child as a shareholder in your limted company (others words gift them shares in the business), any dividends will be treated as follows:
Children under 18 - If your kid is younger than 18, any dividends above £100 per year will be taxed in the parents personal tax return.
Children 18 and over - Once your child reaches adulthood (18 and over), dividends they receive are taxed under their own tax bracket.
This can be a tax advantage if they're in a lower tax bracket than you.
Warning - if you are paying dividends from your personal service company, or a simple business where you are simply billing for your time, you need to be cautious and speak to a tax adviser. HMRC may challenge these practices.
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