Spouse short term contract through the same Ltd. company

[WordIsBond]

You need to think about the difference between being an employee, a shareholder and a director.

100%.

Until you've got a clear handle on that, you don't know enough about this decision to even ask the right questions.

[northernladuk]

If random strangers didn't ask you for advice, then you'd be out of a job on this forum :-)

Hee hee. Well there is that. Bit of advice on this and that but setting your Limited structure up for you because your accountant is tulip I'd be happy to do without.

[Platypus]

having to ask random strangers for advice

If random strangers didn't ask you for advice, then you'd be out of a job on this forum :-)

[LondonManc]

I have asked this question to my accountant but he does not have any views on this, he has advised that I can go either way. But he has not said if there are going to be any contractual/legal/taxation issues in future, which makes me seek advice of the learned members on this forum.

Garbage. That's his job, especially the taxation part! What are you paying him for?

[Old Greg]

Now that she has finished her permie job, she could become a director of my ltd. company running the administration of the company and entitled to dividends from company profits (being a shareholder), which would be a tax efficient option.

The additional option of working on a different contract has got me thinking whether she should start her own ltd. company or not, hence the query?

You need to think about the difference between being an employee, a shareholder and a director.

[VillageContractor]

Well get a new one. That sounds absolutely awful. I would expect to ask the question and get some solid answers and if not that some well explained options.

I assume you are not with a contractor accountant? This should be bread and butter to them. If I was paying an accountant that left me having to ask random strangers for advice I'd be out of there in a heart beat.

This

[missinggreenfields]

Now that she has finished her permie job, she could become a director of my ltd. company running the administration of the company and entitled to dividends from company profits (being a shareholder), which would be a tax efficient option.

The additional option of working on a different contract has got me thinking whether she should start her own ltd. company or not, hence the query?

The two (now three) things aren't related.

She could contract through the company without being a director or a shareholder. She could work for the company without being a director or a shareholder. She could contract through the company and be a director but not a shareholder etc. etc.

In your original post, you say "I was thinking for her to become the director in my company and then she can contract through the company" - she could do neither, either or both of those things. It depends what you are trying to achieve - if this is just a quick contract, then personaly I'd not bother making her a director. If this is a longer-term thing then you could look at how to operate on a differnt basis.

If she is going to go back to another perm role and that pays her a reasonable amount then I'd not fuss about being a sharholder either - unless she already is - because that might not be the best thing in the long run.

Without knowing what she really wants to do and how long for, it's hard to give advise properly - if it's going to be a one-off and she isn't IR35 caught then she might even be better off being self-employed (client invoices your company, your company pays her as self-employed), so you don't have to mess around with payroll.

I'd talk to a professional rather than a bunch of internet randoms, if I was in your shoes.

[coolguycp1]

Why would she need to be a director in the company to contract through it?

Now that she has finished her permie job, she could become a director of my ltd. company running the administration of the company and entitled to dividends from company profits (being a shareholder), which would be a tax efficient option.

The additional option of working on a different contract has got me thinking whether she should start her own ltd. company or not, hence the query?

[northernladuk]

I have asked this question to my accountant but he does not have any views on this, he has advised that I can go either way. But he has not said if there are going to be any contractual/legal/taxation issues in future, which makes me seek advice of the learned members on this forum.

Well get a new one. That sounds absolutely awful. I would expect to ask the question and get some solid answers and if not that some well explained options.

I assume you are not with a contractor accountant? This should be bread and butter to them. If I was paying an accountant that left me having to ask random strangers for advice I'd be out of there in a heart beat.

[dx4100]

I have asked this question to my accountant but he does not have any views on this, he has advised that I can go either way. But he has not said if there are going to be any contractual/legal/taxation issues in future, which makes me seek advice of the learned members on this forum.

If you she contracts through your company outside IR35 then its the same implication when you do it...

If you have any worries and because its only short term, treat her as IR35 caught and sleep well at night

I would only add as a director if you had more reason to do so than one short term gig...

[coolguycp1]

Why are you not asking your accountant this question?

I have asked this question to my accountant but he does not have any views on this, he has advised that I can go either way. But he has not said if there are going to be any contractual/legal/taxation issues in future, which makes me seek advice of the learned members on this forum.

[missinggreenfields]

Why would she need to be a director in the company to contract through it?

[northernladuk]

Why are you not asking your accountant this question?

Don't use random people on the internet to setup and run your company for you.

[coolguycp1]

My wife has recently finished with her permie job, and there is an opportunity for her to get a new contract position soon. As this is likely to be a short term contract, and as I am running my own ltd. Company, I was thinking for her to become the director in my company and then she can contract through the company. This will keep away the hassle of forming a new ltd. Company in my opinion, however, is it advisable considering any contractual/legal issues?