2 up for a Ltd Company

[bledubd]

Hi,

My partner is getting into contracting and I am already a contractor with my own Ltd company. My question is, can my partner use the same ltd company for contracting? She already had shares in the company way before the contracting.

Thanks

[Pondlife]

Yes although it might not be a good idea.

Two good reasons

1)FRVS threshold

2) Everything else

[chris79]

The answer is yes you can.

Me and my partner both use the same limited company and have a 50/50 share holding, although I'm the only Director, she's just an employee in my company.

For practical reasons tailored to your own situation (and to address concerns listed above) etc, it might be wise to speak to a good accountant to get a professional view on the setup.

[Gonzo]

As has already been suggested, it can be done, but is probably not a good idea.

You might save some of the annual accounting fees, but potentially open up other issues with the Flat Rate VAT scheme for example.

I would say that the saving you make is not worth the potential problems, have separate companies instead.

[bledubd]

Thank you all for your responses. I am not yet sure that she will stick with contracting so we'll just use the same ltd for the time being and then split if things take us to the lofty heights of the VAT threshold.

Thanks once more

[JoJoGabor]

Does it not look btter to have 2 employees in the company from an IR35 perspective?

Why does it complicate FRS VAT?

[Pondlife]

Why does it complicate FRS VAT?

You are no longer eligible for the flat rate scheme once you hit a threshold of about £187K (inc VAT IIRC). You then cannot re-register for the next 12 months.

The FRVS is a nice little earner for most of us I should imagine.