Originally posted by Maslins
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
New company strucure - recommendation please
Collapse
X
-
-
ok, many thanks
another option I was considering was to register a new 2nd company in name of my spouse and then pay her company for the services she offers i.e. marketing, admin etc but there is the overhead of maintaining the accounts of two different companiesComment
-
Originally posted by matrixfan View Postanother option I was considering was to register a new 2nd company in name of my spouse and then pay her company for the services she offers i.e. marketing, admin etc but there is the overhead of maintaining the accounts of two different companiesComment
-
Originally posted by Maslins View PostHaving a spouse with 50% of the shares is still ok tax avoidance. HMRC challenged it recently and lost in the High Court (Arctic Systems case if you want to Google it).
HMRC have since talking about creating some income shifting rules to prevent that type of setup working in future, but the rules were tosh and never implemented.
So basically yes, you can do everything you've suggested. Only caveat is that you'll need to justify wages to your spouse. Assuming you're only likely to pay them ~£5.7k as you will yourself, it's not too hard to justify a wage of that size.
Doing things that way, on profits of up to around £100k you can get ~81% in your pocket.Comment
-
Originally posted by Ruse View PostMy understanding of the new Company Law rules is that it would now be possible to have your spouse as the sole director and the fee earner as Co. Sec., is there any issue with structureing this way around ?Comment
-
Originally posted by Mr.Whippy View PostDo most people (with a non-working spouse) do this? My Mrs is at home looking after our little 'un. She currently has no association with MyCo, other than being the registered secretary at Companies House so she can sign all the necessary paperwork to close up MyCo and get funds distributed should I get hit by a bus........
I was told that it was kind of frowned up by hmrc as it was pretty much blatant tax evasion, but if that isn't the case should I perhaps reconsider and make her an employee/director?Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- An IR35 bill of £19m for National Resources Wales may be just the tip of its iceberg Today 09:20
- Micro-entity accounts: Overview, and how to file with HMRC Yesterday 09:27
- Will HMRC’s 9% interest rate bully you into submission? Nov 5 09:10
- Business Account with ANNA Money Nov 1 15:51
- Autumn Budget 2024: Reeves raids contractor take-home pay Oct 31 14:11
- How Autumn Budget 2024 affects homes, property and mortgages Oct 31 09:23
- Autumn Budget 2024: Reeves raids contractor take-home pay Oct 31 09:20
- Autumn Budget 2024: Umbrella companies hit, Employer NICs hiked, and BADR heading for 18% Oct 30 16:54
- Autumn Budget 2024: chancellor’s full speech Oct 30 16:34
- RecExpo got told this about Labour’s Employment Rights Bill… Oct 30 09:10
Comment