Hello,
I have posted this else where but would like to widen up the response.
Myself and my partner both work in IT. We both do equivalent work (J2EE). Speaking to some contractors at work they have suggested that I go contracting too. They also said that it would be good if you set up a company and that way your partner can be part of it and contract through it as well.
I see many advantages to this, firstly proving substitution should be easier (IR35). Also we only have one company to worry about rather than setting up individual ones.
So using eacbs I have formed a company with myself as a Director with one (1) share and my partner as a Directory and Com Sec with one (1) share also.
I have my first contract starting on the 21th Jan (wish me luck!) but I am worried about s660. Thing is, Rachel (my partner) is not likely to start contracting until the summer. We didn't want to both quit permie employment at the same time. So when dividends are paid out obviously both Directors (me and partner) will receive monies. However, does this look dodgy to the IR etc?
My assumption is that all is okay. As Rachel already has a permie job (being paid a fair amount too!) in the higher tax bracket and so for me (us) it will not be a tax benefit as it will get the same level of tax applied.
Any help would be appreciated.
I have posted this else where but would like to widen up the response.
Myself and my partner both work in IT. We both do equivalent work (J2EE). Speaking to some contractors at work they have suggested that I go contracting too. They also said that it would be good if you set up a company and that way your partner can be part of it and contract through it as well.
I see many advantages to this, firstly proving substitution should be easier (IR35). Also we only have one company to worry about rather than setting up individual ones.
So using eacbs I have formed a company with myself as a Director with one (1) share and my partner as a Directory and Com Sec with one (1) share also.
I have my first contract starting on the 21th Jan (wish me luck!) but I am worried about s660. Thing is, Rachel (my partner) is not likely to start contracting until the summer. We didn't want to both quit permie employment at the same time. So when dividends are paid out obviously both Directors (me and partner) will receive monies. However, does this look dodgy to the IR etc?
My assumption is that all is okay. As Rachel already has a permie job (being paid a fair amount too!) in the higher tax bracket and so for me (us) it will not be a tax benefit as it will get the same level of tax applied.
Any help would be appreciated.
