1st time contracting - help please

[TheFaQQer]

As for the salary for the mrs thing. Be careful - U cant pay her £7K for two hours a month work. Thats dodgy.

I disagree.

It's not about the volume of work, but the responsibility of the work which is important. There is significant legal responsibility to be had by being the company secretary, which should be rewarded. If the director is responsible for ensuring that the contracts are reviewed and they are the person who signs them, then there is a considerable contribution to the business.

According to the Institute of Directors, a non-executive director for small or unquoted companies earn on average between £15,000 and £20,000. Vodafone pay one of their non-execs an additional £25k for chairing the remuneration committee.

Why is it "dodgy" to pay someone who you are married to a fraction of this amount to take on more responsibility and accountability?

[northernladuk]

I disagree.

It's not about the volume of work, but the responsibility of the work which is important. There is significant legal responsibility to be had by being the company secretary, which should be rewarded. If the director is responsible for ensuring that the contracts are reviewed and they are the person who signs them, then there is a considerable contribution to the business.

According to the Institute of Directors, a non-executive director for small or unquoted companies earn on average between £15,000 and £20,000. Vodafone pay one of their non-execs an additional £25k for chairing the remuneration committee.

Why is it "dodgy" to pay someone who you are married to a fraction of this amount to take on more responsibility and accountability?

Which is very true indeed but you have to put some reality on this. You say yourself it is for the responsibility and accountability. Your wife doing some admin in a one man band co is about as low down the responsibility and accountability ladder as you can go. The arrangement is nothing more than a tax avoidance scheme, of which the govt are not overly enamoured with. What is good for one situation does not necessarily mean you can just port it straight over to another.

Perfect advice for a small company, a bit too far for a one man band newly starting out still got permie head on contractor.

[TheFaQQer]

Perfect advice for a small company, a bit too far for a one man band newly starting out still got permie head on contractor.

When you are starting out is the time when you need someone to take that responsibility, surely? You need someone to make sure that everything that you are doing is above board and correct.

Granted that doesn't appear to happen in this case, but still - if there is work being done, and someone is doing that work, then there is a reasonable expectation to be paid for it. If you brought in someone from outside the family to do the admin work, make sure that the contracts are looking good, chasing payments, ensuring that the company is registered for everything it should be, booking travel and accommodation as necessary, arranging insurance etc. then would you expect them to do it for free? Absolutely not, so why should there be any expectation that just because you are married to that person and they aren't working anywhere else that they should do it for free?

Oh, and once you start paying someone to do some work, it ceases to be a one-man band

[northernladuk]

When you are starting out is the time when you need someone to take that responsibility, surely? You need someone to make sure that everything that you are doing is above board and correct.

Granted that doesn't appear to happen in this case, but still - if there is work being done, and someone is doing that work, then there is a reasonable expectation to be paid for it. If you brought in someone from outside the family to do the admin work, make sure that the contracts are looking good, chasing payments, ensuring that the company is registered for everything it should be, booking travel and accommodation as necessary, arranging insurance etc. then would you expect them to do it for free? Absolutely not, so why should there be any expectation that just because you are married to that person and they aren't working anywhere else that they should do it for free?

Oh, and once you start paying someone to do some work, it ceases to be a one-man band

The OP doesn't appear to fully understand his situation so not sure how is wife is supposed to but anyway, this could rumble on forever. Good points, well made but OP has to assess the situation on it's own merits against his levels of risk acceptance.....

[jamesbrown]

Oh dear - read the first timer's guide. Please.

This, please. I'm all for professional responses in the professional forums, but you're in way above your head. You should've done more reading on the basics of forming and running a company at the outset. An accountant doesn't provide a substitute for understanding. While a little late, I suggest you do make use of the excellent resource this website provides without expecting the other participants to act as your filter to this very basic info.

[psychocandy]

When you are starting out is the time when you need someone to take that responsibility, surely? You need someone to make sure that everything that you are doing is above board and correct.

Granted that doesn't appear to happen in this case, but still - if there is work being done, and someone is doing that work, then there is a reasonable expectation to be paid for it. If you brought in someone from outside the family to do the admin work, make sure that the contracts are looking good, chasing payments, ensuring that the company is registered for everything it should be, booking travel and accommodation as necessary, arranging insurance etc. then would you expect them to do it for free? Absolutely not, so why should there be any expectation that just because you are married to that person and they aren't working anywhere else that they should do it for free?

Oh, and once you start paying someone to do some work, it ceases to be a one-man band

But then if you got someone in from outside you wouldn't pay them £7K a year either. Especially when chances are you pay your accountant about £1500 a year....

I think you will find that 'most' accountants will tell you to not bother with this but instead make the mrs a shareholder and split dividends.

[network]

Thanks again. just a quick question - so i can have my spouse as a share holder witha percentage 60:40 (60 myself and 40 spouse) - this should not be a problem with hmrc, isnt it ? the problem will start only when i pay her isnt it ?

[Notascooby]

Thanks again. just a quick question - so i can have my spouse as a share holder witha percentage 60:40 (60 myself and 40 spouse) - this should not be a problem with hmrc, isnt it ? the problem will start only when i pay her isnt it ?

ppffft pfffttt must resist... please do some reading.

[network]

could you please provide me the links or let me know what to search for pls ? pretty new to contracting and this forum so any help appreciated

[Notascooby]

could you please provide me the links or let me know what to search for pls ? pretty new to contracting and this forum so any help appreciated

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