As your kids head off to university or out into the big wide world you may gift them some of the shares in your business. Alternatively, they can buy into the business themselves, and you can deduct this payment from their first dividend.
They might have the same class of share or a different class (see Alphabet shares which I’ll cover next week) so that you have more flexibility over the dividends that they receive. Paying them dividends would allow them to take advantage of the tax-free limit (currently £500) and any unused personal allowance.
They do not need to work in the business in order to receive shares.
Save NI and maybe lower rate of personal tax.