Fact pattern

Susan Wright, Charles Thompson and John Dodgson have recently incorporated their business. Having previously operated as a partnership, they are seeking advice as to how they, as directors and shareholders, will be subject to taxation on payments made to them. In addition, they need advice on how such payments affect their company, Winstern Limited.

Each director is to receive an annual salary, as each is going to be involved in the business on a day-to-day basis.