Help with Ltd structure

[shoey]

Hi ppls,

I have some opportunities to do some after-hours freelancing work which I want to utilize a limited company structure for. In my main day-job contract, I'm already using umbrella PAYE & for now want to keep the two jobs separate.

What I do want tho is to employ my partner as an employee & pay her through salary. The benefits is that her total income, being lower, would get taxed less (than if I PAYE'd myself), and it also increases her reportable income for potential visa apps.

My questions are:
- Is this a valid, legal structure?
- Does her (work) role in the company have to be well-defined and directly linked to the company's income?
- Would there be doubled costs? (Such as NI for 2 people? employee benefits that I must pay?)
- Do I have to pay myself a salary as well?
- Will this be difficult in accountancy?
- How would I produce original paperwork for the company such as payslips, etc?

many thanks.

[TheFaQQer]

My questions are:
- Is this a valid, legal structure?

Yes

- Does her (work) role in the company have to be well-defined and directly linked to the company's income?

Since the collapse of Arctic, then no it doesn't, I believe. If the Family Business Tax comes in, then that would be a completely different situation, though.

- Would there be doubled costs? (Such as NI for 2 people? employee benefits that I must pay?)

Some would be higher, some would not. What benefits are you paying? Do you need to pay them to all employees? NI has to be paid on the salary of all employees, but that would only be doubled is you are both earning the same amount.

- Do I have to pay myself a salary as well?

No.

- Will this be difficult in accountancy?

No.

- How would I produce original paperwork for the company such as payslips, etc?

many thanks.

Use whatever way works best for you - word, accountancy program, accountant, excel......

some after-hours freelancing work

For it to be worthwhile, it's got to be plenty of hours or a high rate, to be honest.

[Sally BFCA]

You may also consider making your partner a share holder; this way, they could have dividend income, that saves on employers NICS .

Any salary you pay them has to be reflective of a market rate salary. They do; also, have to actually do some work for the company to earn the salary.