Whats your views on Budget 2015?

[psychocandy]

You can't pay £1 per hour - remember the national minimum living wage will be £9...heheheeee

No but I can offer her a zero hour contract and pay her for one hour a month? £10.

[Kenny@MyAccountantFriend]

Downside to taking on another employee would mean that you are subject to auto enrolment which a single director company would not be.

So it will become a lesser of two evils, either take the hit on the NI (or pay a lower salary) or have to auto enrolment to make use of the allowance.

[DaveB]

Ummm you can be a Director without being an employee. My Ltdco has two directors - me and the mrs - so we both get dividends but Im the only employee. And I get a salary.

No wife does not have a contract of employment - but neither do I. Am I right its not necessary for directors?

Yes agree it would be too obvious to do this but who knows....

Being a director has nothing to do with getting dividends. You only need to be a sharehoilder to get them.

[psychocandy]

Hmm let's analyse that statement. How many employees can I count in that sentence.....



You would think they are not stupid and already have this piss take on their radar so could kill two birds with one stone if they word it right.

Question though. Does your wife have a contract of employment?

Ummm you can be a Director without being an employee. My Ltdco has two directors - me and the mrs - so we both get dividends but Im the only employee. And I get a salary.

No wife does not have a contract of employment - but neither do I. Am I right its not necessary for directors?

Yes agree it would be too obvious to do this but who knows....

[Wijay@WISAccountancy]

One director? I assume two directors one employee makes no difference its the number of employees that counts?

Like someone said, whats to stop you employing your mrs as an admin assistant on a zero hours contract? Two employees.

I know at the moment employing the mrs on £10K a year to 'do the books' is considered a bit of a pisstake and likely to flag up. I understand the rule is you can't pay a wage to a family member that you wouldnt pay to someone else.

1 hour a month submitting my invoices etc. Zero hours contract. 1 hours pay per month. Two employees.....

You can't pay £1 per hour - remember the national minimum living wage will be £9...heheheeee

[northernladuk]

One director? I assume two directors one employee makes no difference its the number of employees that counts?

I'd say pretty safe assumption.

Like someone said, whats to stop you employing your mrs as an admin assistant on a zero hours contract? Two employees.

I know at the moment employing the mrs on £10K a year to 'do the books' is considered a bit of a pisstake and likely to flag up. I understand the rule is you can't pay a wage to a family member that you wouldnt pay to someone else.

1 hour a month submitting my invoices etc. Zero hours contract. 1 hours pay per month. Two employees.....

You would think they are not stupid and already have this piss take on their radar so could kill two birds with one stone if they word it right.

Question though. Does your wife have a contract of employment?

[psychocandy]

Next renewal tell agent/client you want at least 7.5% more - blame George....

[psychocandy]

You sure did!

Will be interesting to see exactly when it applies from, will it be backdated to the start of this tax year or just apply from 2016/17 onwards.

Martin
Contratax Ltd

One director? I assume two directors one employee makes no difference its the number of employees that counts?

Like someone said, whats to stop you employing your mrs as an admin assistant on a zero hours contract? Two employees.

I know at the moment employing the mrs on £10K a year to 'do the books' is considered a bit of a pisstake and likely to flag up. I understand the rule is you can't pay a wage to a family member that you wouldnt pay to someone else.

1 hour a month submitting my invoices etc. Zero hours contract. 1 hours pay per month. Two employees.....

[jffinancial]

thanks

Well thanks Georgie boy - you certainly keep us accountants on our toes.

Need to see the fallout and get our heads around the detail of this as it will have a big impact on salary & dividend tax planning for limited co contractors and freelancers next year.

Time for another coffee...

[Wijay@WISAccountancy]

Contrafcting is finished - You have nine months to make hay and then quit

The changes in the dividend income rules are so big that it makes no sense to continue having an incorporation

I think thats too big of a statement. Remember you still do not pay NI on Divs, plus not forced into contributing into pensions, plus sharing the tax burden with spouse - all this is still possible with contracting! Chancellor is not definitely friendly towards the freelancers/contractors...