My wife has recently finished with her permie job, and there is an opportunity for her to get a new contract position soon. As this is likely to be a short term contract, and as I am running my own ltd. Company, I was thinking for her to become the director in my company and then she can contract through the company. This will keep away the hassle of forming a new ltd. Company in my opinion, however, is it advisable considering any contractual/legal issues?
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Why are you not asking your accountant this question?
Don't use random people on the internet to setup and run your company for you.'CUK forum personality of 2011 - Winner - Yes really!!!!
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Why would she need to be a director in the company to contract through it?Comment
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I have asked this question to my accountant but he does not have any views on this, he has advised that I can go either way. But he has not said if there are going to be any contractual/legal/taxation issues in future, which makes me seek advice of the learned members on this forum.Originally posted by northernladuk View PostComment
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If you she contracts through your company outside IR35 then its the same implication when you do it...Originally posted by coolguycp1 View Post
If you have any worries and because its only short term, treat her as IR35 caught and sleep well at night
I would only add as a director if you had more reason to do so than one short term gig...Comment
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Well get a new one. That sounds absolutely awful. I would expect to ask the question and get some solid answers and if not that some well explained options.Originally posted by coolguycp1 View Post
I assume you are not with a contractor accountant? This should be bread and butter to them. If I was paying an accountant that left me having to ask random strangers for advice I'd be out of there in a heart beat.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Now that she has finished her permie job, she could become a director of my ltd. company running the administration of the company and entitled to dividends from company profits (being a shareholder), which would be a tax efficient option.Originally posted by missinggreenfields View Post
The additional option of working on a different contract has got me thinking whether she should start her own ltd. company or not, hence the query?Comment
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The two (now three) things aren't related.Originally posted by coolguycp1 View Post
She could contract through the company without being a director or a shareholder. She could work for the company without being a director or a shareholder. She could contract through the company and be a director but not a shareholder etc. etc.
In your original post, you say "I was thinking for her to become the director in my company and then she can contract through the company" - she could do neither, either or both of those things. It depends what you are trying to achieve - if this is just a quick contract, then personaly I'd not bother making her a director. If this is a longer-term thing then you could look at how to operate on a differnt basis.
If she is going to go back to another perm role and that pays her a reasonable amount then I'd not fuss about being a sharholder either - unless she already is - because that might not be the best thing in the long run.
Without knowing what she really wants to do and how long for, it's hard to give advise properly - if it's going to be a one-off and she isn't IR35 caught then she might even be better off being self-employed (client invoices your company, your company pays her as self-employed), so you don't have to mess around with payroll.
I'd talk to a professional rather than a bunch of internet randoms, if I was in your shoes.Comment
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You need to think about the difference between being an employee, a shareholder and a director.Originally posted by coolguycp1 View PostComment
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