Advice Appreciated...

[Lucifer Box]

As you are going to be an employee of the other company, most of your questions are not relevant. Employees can ask for all sorts of things as part of negotiating their package, including a bonus based on your employer's performance, based on your performance, or both. Your employer can, of course, tell you to poke off. The only way to know is to ask your putative employer.

Bonuses to contractors are, of course, nearly always dependent on contractor performance, e.g. completing a task by a specified date.

As far as tax treatment goes, you will simply be filling in two employment sections on your SA return and adding together the total income from both. Shouldn't raise any flags at HMRC in its own right - it's a common enough arrangement.

[Jefferson]

I currently run a limited company but have been investigating a change of direction which is looking promising.
If this happens though it looks like I would be employed by a new company which will be set up by someone else, rather than contracting my services through my limited.
If this happened I was thinking of asking for a company performance related bonus in addition to salary to boost the income a bit.
Questions are as follows:
1) Has anyone negotiated bonuses as a contractor which are based on the performance of the client's company? (IE I would prefer to contract my services to this new company but also would like to negotiate a bonus which reflects the company's success although assume this would be tricky to be outside of IR35)
2) If the only option was to be employed by this new company what happens tax-wise if I continue to do other work through my Limited?
3) Again if the only option was to be employed by the new company would an increase in PAYE pay be flagged by Inland Revenue (Currently taking reasonably low salary and divis)