Contracting through a LTD Co whilst not being a director

[malvolio]

How many behind the scenes major shareholders actually pull the strings in big business? Quite a few I'd suggest, where they want to influence the company (and moreover an industry).

The problem (or potential problem) here is not who owns the company and who is a shareholder, it's the old thing about shadow directors. If you are directing the company's business and financial activities while someone else pretends to be a director, then HMRC will take a close interest in both your tax affairs since this is a potential for evasive activities as well as being potentially fraudulent (not in your case, perhaps, but that isn't the issue). It is covered in the Companies Act 2006 and a good summary of the risks are over here.

If you're genuinely worried about privacy then talk to Companies House. Don't risk triggering an investigation just to set up an unnecessary pretend organisation.

[LondonManc]

Yeah but there is other governance and procedure in place in that model. The shareholder doesn't have access to the business bank account and so on. I see what you are saying but I don't think big business and our model compare. Just seems wrong. Maybe I'm over thinking it.

The legalities are the same, size matters not. Does the shareholder need access to the business bank account, or simply enough influence to "encourage" the MD to declare a dividend.

What the OP's intended role within the company is could be interesting though, especially from both an insurance and remuneration standpoint.

[LondonManc]

The problem (or potential problem) here is not who owns the company and who is a shareholder, it's the old thing about shadow directors. If you are directing the company's business and financial activities while someone else pretends to be a director, then HMRC will take a close interest in both your tax affairs since this is a potential for evasive activities as well as being potentially fraudulent (not in your case, perhaps, but that isn't the issue). It is covered in the Companies Act 2006 and a good summary of the risks are over here.

If you're genuinely worried about privacy then talk to Companies House. Don't risk triggering an investigation just to set up an unnecessary pretend organisation.

I don't personally care, I'm through a "normal" ltd framework. It's unfortunate that this person feels threatened; I hope they're not doing it to simply avoid ex-wife/CSA claims.

[missinggreenfields]

I don't personally care, I'm through a "normal" ltd framework. It's unfortunate that this person feels threatened; I hope they're not doing it to simply avoid ex-wife/CSA claims.

I've been lucky enough to not have any dealings with CSA, but don't you have to declare your income anyway? Not being a director wouldn't help there, but being a cad might.

[northernladuk]

I've been lucky enough to not have any dealings with CSA, but don't you have to declare your income anyway? Not being a director wouldn't help there, but being a cad might.

Not so sure about that.

Contractors' Questions: Does the CSA consider dividends? :: Contractor UK

They can request the company accounts as part of the process. I'd guess he's either trying not to be found hence hiding his address or hiding the fact he's a director to try and avoid declaring his dividend income. Either way he's going to come unstuck eventually and when he does it's going to be a rough ride for him.

That said we've no idea if this is the case anyway.

[missinggreenfields]

Not so sure about that.

Contractors' Questions: Does the CSA consider dividends? :: Contractor UK

They can request the company accounts as part of the process. I'd guess he's either trying not to be found hence hiding his address or hiding the fact he's a director to try and avoid declaring his dividend income. Either way he's going to come unstuck eventually and when he does it's going to be a rough ride for him.

That said we've no idea if this is the case anyway.

https://www.gov.uk/government/upload...worked-out.pdf

Income includes dividends for CSA calculation (pages 45 and 46) so if this is the intention then it won't make any differnece unless someone lies about their income.

[LondonManc]

Not so sure about that.

Contractors' Questions: Does the CSA consider dividends? :: Contractor UK

They can request the company accounts as part of the process. I'd guess he's either trying not to be found hence hiding his address or hiding the fact he's a director to try and avoid declaring his dividend income. Either way he's going to come unstuck eventually and when he does it's going to be a rough ride for him.

That said we've no idea if this is the case anyway.

As you say, we've no idea.

Best advice if you don't want your name "in lights" is to go umbrella and take the hit on the tax.

[northernladuk]

https://www.gov.uk/government/upload...worked-out.pdf

Income includes dividends for CSA calculation (pages 45 and 46) so if this is the intention then it won't make any differnece unless someone lies about their income.

Ah yes, sorry I was angling at keeping retained profits to artificially lower his income which I thought he couldn't do but reading up that's in the case of divorces when the company is an asset, not in the case of CSA so it's company money not his.

I misread your original post incorrectly which started me off on the wrong path. Am just gonna.... like.... quietly crawl back under my rock. Nothing to see here. Move on.....