PSC Alternatives with partner - Umbrella or something else

[TaikoHax]

[note, i have done searches but i suspect the 'special snowflake' nature of this is bringing up too many posts leading in the wrong direction]

My fiance and I are both contractors in similar roles (IT Project/Programme Management but arguably she's significantly more experienced than me) running separate Ltd companies from the same address for a number of years but working with different clients (so very distinctly different companies with separate finance flows rather than a contractor and partner doing admin for a salary).

Working on a running assumption that we're not going to kill each other anytime soon (15 years and no murder yet) is there an advantage (financial or protection from speculated legislation) in ditching our individual companies and starting a new one as defacto partners?

I speculate (without much proper knowledge) this would offer some protections from the clamp down on PCS's and maybe (this is where my knowledge really falls short) protect against some IR35 guff (since in theory one could replace the other mid project IF a client was so inclined...which in reality i'd be surprised if a client was that relaxed).

I don't know if we'd count as an Umbrella company in that instance and thus get stomped for other reasons but I guess i'm just trying to work out if there's any REAL advantage (be it immediate or 'sensible prep') beyond a potential reduction in admin (one set of accounts vs two).

In essence i'm just asking here as I suspect there are those who live and breathe this stuff and who will likely have more experience than us in what works, what doesn't and what qualifies as 'taking the piss' (our accountant hasn't been a huge amount of help).

Ant

[SuperLooper]

(our accountant hasn't been a huge amount of help).

Your accountant probably quite enjoys charging you two lots of fees.

[dotcom12]

[note, i have done searches but i suspect the 'special snowflake' nature of this is bringing up too many posts leading in the wrong direction]

My fiance and I are both contractors in similar roles (IT Project/Programme Management but arguably she's significantly more experienced than me) running separate Ltd companies from the same address for a number of years but working with different clients (so very distinctly different companies with separate finance flows rather than a contractor and partner doing admin for a salary).

Working on a running assumption that we're not going to kill each other anytime soon (15 years and no murder yet) is there an advantage (financial or protection from speculated legislation) in ditching our individual companies and starting a new one as defacto partners?

I speculate (without much proper knowledge) this would offer some protections from the clamp down on PCS's and maybe (this is where my knowledge really falls short) protect against some IR35 guff (since in theory one could replace the other mid project IF a client was so inclined...which in reality i'd be surprised if a client was that relaxed).

I don't know if we'd count as an Umbrella company in that instance and thus get stomped for other reasons but I guess i'm just trying to work out if there's any REAL advantage (be it immediate or 'sensible prep') beyond a potential reduction in admin (one set of accounts vs two).

In essence i'm just asking here as I suspect there are those who live and breathe this stuff and who will likely have more experience than us in what works, what doesn't and what qualifies as 'taking the piss' (our accountant hasn't been a huge amount of help).

Ant

What you say does make sense, apart from reducing the compliance burden, it should add an extra layer of legitimacy in terms of the company being an actual trading entity and therefore reducing the chances of being brought into the scope of IR35 especially if you are able to substitute one another.

[TaikoHax]

Your accountant probably quite enjoys charging you two lots of fees.

Truth be told he's not hugely expensive but he's also not hugely proactive/good at communicating either.
I imagine there'd be some saving but the majority of stuff we use the same accounting package for vat/salary etc.

[TaikoHax]

What you say does make sense, apart from reducing the compliance burden, it should add an extra layer of legitimacy in terms of the company being an actual trading entity and therefore reducing the chances of being brought into the scope of IR35 especially if you are able to substitute one another.

Yeah. It's an interesting grey area (if it could be called such) as I imagine most companies hiring a PM wouldn't be super happy just 'hot swapping' for a different PM but at the same time we certainly have comparable experience, skillset and qualifications on paper (more experienced in certain areas over others) and logically we could do it should that be required.

[SeanT]

I don't think I'd do it. It just seems disingenuous to me, what with the clients being as differing as you say, the different levels of expertise and not actually exercising the right of substitution bit. At least if one of your companies goes belly up at present you still have the other one. Also, I've seen the happiest married people with 20 years or more under their belts wind up divorced. But by all means negotiate a better deal with your accountant for being a wazzock about the idea.

[SueEllen]

I contracted alongside a husband and wife team who did this. They also substituted for each other at the client I was at.

If you get married then as everything is jointly owned do it, but until you have a marriage certificate keep separate companies.