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ltd companies

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    ltd companies

    Hi
    I am just in the process of setting up my own limited company. Can i let a few of my friends go through my company to get paid rather than use an umbrella?? Are there any legal implications?
    Hope someone can shed some light on this for me....

    #2
    Are there any legal implications?
    Oh yes...

    Go to the HMRCE website if you really want to scare yourself.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

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      #3
      Originally posted by joolstaylor00
      Can i let a few of my friends go through my company to get paid rather than use an umbrella??
      Too vague. What do you actually want to do.

      If you employ them (with all the legal consequences) then it is not a problem. The minimum consequences are 20 days holiday (or pro rata - check). Maternity pay, sick pay. There are statutory rates for these laid down and it may be reclaimable depending upon the size of the enterprise.

      If they are sole traders then it is perfectly permissable to settle their invoices. However I would suggest reading up on employment status issues otherwise you could be in for a very nasty shock indeed if it turns out they are not self employed after all.

      If you are talking about engaging other companies to undertake work on your behalf (i.e. your mate operate through a LTD) then there is no real reason why not.

      Of course if you are expecting to improve your and or their tax situations this is unlikely to be achieved.

      Cojak pointed you in the right direction. I'd also recommend your accountant.

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        #4
        bl**dy hell

        you got me so scared I'm not even going to the web site


        (\__/)
        (>'.'<)
        ("")("") Born to Drink. Forced to Work

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