Form own LTD or use Wife's?

[Platypus]

Quick one regarding IR35 and working through someone elses company. What if you join your wifes company as an employee and she only pay you a salary of say £15K and the contract you work on would be classified as inside of IR35. Would she be able to take all money on top of the £15K as a dividend? Surely, she can't be forced to give it to you as a salary as you are her employee?

I think that's a good point.

[techadept]

Hi folks, just to let you know that the company accountant has advised that he can see no sound argument against me becoming a director/shareholder in my wife's company.

There are no overriding TAX implications because I am a working director making money for the business (the larger share of the income will come from me) and not joining to just take a salary for some ad-hoc work or whatever.

We can continue to use the Flat Rate Vat scheme as the threshold is £150, and we are below that level of VAT taxable company turnover.

Sorry if I have not covered off all the points raised but thanks for your interest and assistance and I will continue to monitor this thread in case there are any further points raised.

I note the new comments re. IR35, but that is not another fine kettle of fish I wish to get into right now. I'll just make sure the contract is professionally IR35 checked and get on with it. I'm a Director of a business for goodness sakes! Where's my cigar!

[pmeswani]

Hi folks, just to let you know that the company accountant has advised that he can see no sound argument against me becoming a director/shareholder in my wife's company.

There are no overriding TAX implications because I am a working director making money for the business (the larger share of the income will come from me) and not joining to just take a salary for some ad-hoc work or whatever.

We can continue to use the Flat Rate Vat scheme as the threshold is £150, and we are below that level of VAT taxable company turnover.

Sorry if I have not covered off all the points raised but thanks for your interest and assistance and I will continue to monitor this thread in case there are any further points raised.

I note the new comments re. IR35, but that is not another fine kettle of fish I wish to get into right now. I'll just make sure the contract is professionally IR35 checked and get on with it. I'm a Director of a business for goodness sakes! Where's my cigar!

Good Luck. I still think it's risky ground, even if there is no Tax issue. Just hope that your wife doesn't do a runner with all the money and leave you to sort out the debts. Make sure you have access to the Bank Account and Statements. Just remember, just because on paper the decision is joint, it only takes one person to do something without agreement to drop someone in deep poo.