Limited company with wife and perm job

[michalz]

Hello,

I am permanent employee earning 50k anualy. I want to start limited company with my wife, who is currently unemployed and has no earnings (regarding fiscal year). Also I want to stay on my permanent job at the same time.

Should we both be directors and shareholders to maximize our profits? How we should divide shares and salaries then?
We won't be expecting any income in the first 2 months, since we have to focus on advertising and attracting the clients through various channels.

Will my wife be able to set her salary or even stop it on monthly basis if necessary? (E.g. on months when we won't have any turnover) So we won't pay NI and other tax.

Thanks!

[NotAllThere]

Being a director has nothing to do with profits. If you're both shareholders, then you can maximise the net income provided to you from the company by taking out money via dividends (no NI). You can pay yourself in whatever way you choose.

Now read the "First Timers" link over there ------->

[MarillionFan]

I would recommend the following. Register yourself as self employed. Start your new business. Get a 'Joe Bloggs trading as' bank account as self employed(free banking for two years). Transfer some funds in (as a loan). Hire the wife as an employee & pay her from the new 'company'. You will then have to do a self assessment form incorporating your new business. If the new business is a dud and does not make any profit, the losses can be offset against your permanent income and you will be able to get a tax rebate. If it's successful, then you'll pay more tax(so can balance the wife's salary to adjust for the best combo).

[TestMangler]

Being a director has nothing to do with profits. If you're both shareholders, then you can maximise the net income provided to you from the company by taking out money via dividends (no NI). You can pay yourself in whatever way you choose.

Now read the "First Timers" link over there ------->

NLUK !! They've made you a mod !! Congratulations !!

[SueEllen]

TestMangler you will be doing it very soon.

Most people now work with a computer so it's expected they will be able to read guides on forums and be able to use search functionality.

[MarillionFan]

TestMangler you will be doing it very soon.

Most people now work with a computer so it's expected they will be able to read guides on forums and be able to use search functionality.

We'll have been dead a long time before he or his descendants work that out.

[TestMangler]

We'll have been dead a long time before he or his descendants work that out.

Hopefully. I'll be reading the guides on Wednesday so you've got time to prepare

[northernladuk]

NLUK !! They've made you a mod !! Congratulations !!

Taught em everything they know.....