Reply to: Wife going contracting as well

[b r]

As said, it works for us, keeps costs down and enables a load of flexibility over payments to employees/directors vs earnings.

[WordIsBond]

Ouch!!

It would only hurt if there were any truth in it.

[northernladuk]

How will I know when you need corrected if I ignore you?

Ouch!!

[SueEllen]

I was going to suggest your wife could talk to YOU, but then realised that might not fit the bill

Imagine two people married to each other actually talking and listening to each other....

[WordIsBond]

Yeah. That'd be better on balance. Ignore me :-)

How will I know when you need corrected if I ignore you?

[WordIsBond]

a full and frank discussion with an experienced professional

That would be his wife then?
or mine

I was going to suggest your wife could talk to YOU, but then realised that might not fit the bill

[northernladuk]

Accountants can get contract work the same ways we can. Through agencies and networking.

Oh yeah, just had a dig around jobserve. Quite a lot of gigs out there.

[MrMarkyMark]

Accountants can get contract work the same ways we can. Through agencies and networking.

I thought they just walked around wearing these

[SueEllen]

Just a thought. I'd look very carefully at the IR35 situation. The thread we had with an accountant wife turned out to be more complex than the initial question. When we dug in to it she was inside IR35 by the nature of her engagement. I don't know how accountants get contract work but if she's back filling for maternatiy or while they recruit it could be more like temping than contracting. She won't have RoS and they will expect her to be under D&C rather than deliver a specific piece of work. I am guessing there could easily be a case where she's just a bum on seat working with other employees for some reason which won't help.

I'm not sure IR35 is as straightforward as it is for us..

Accountants can get contract work the same ways we can. Through agencies and networking.

[eldy]

This will be her first contract. Day rate is considerably more than mine and ive been contracting for over 3 years now. I hope she will enjoy contracting for many years to come and develop the right mindset for it.

She is a Chartered Accountant and as Alan says her skills are not really transferable to the requirements of a contracting company. She is happy to learn and hopefully at some point can then take over my accounts when she is comfortable.

It looks like company+ir35 insurance and travel/subsistance will be the main expenses she will be able to claim.

[Alan @ BroomeAffinity]

Best advice you've given to date that

I've never been so insulted since THEPUMA left. [emoji3]

[northernladuk]

Yeah. That'd be better on balance. Ignore me :-)

Best advice you've given to date that

[Alan @ BroomeAffinity]

Alan, you suggested umbrella. That puts her fully into PAYE and the umbrella takes their cut.

If we're going full PAYE anyway, why not just bill through his own LtdCo, pay her under PAYE, not change the share structure at all, and save the umbrella's share? Then, if she makes a go of it, likes contracting, and gets another contract, they could change the share structure then.

For all we know, his wife may already own shares anyway. But is there any reason what I proposed wouldn't work?

Even better, I think, he could sign the contract but then pay her as a self-employed subcontractor, which would let him out of PAYE and all that comes with it. After four months, add her to his Ltd or get her own, whatever makes the most sense for them.

An umbrella seems an unnecessary expense in this case, when he's got a company set up already.

Edit: Heh. NAT beat me to it.

Yeah. That'd be better on balance. Ignore me :-)

[northernladuk]

There are so many variables here and I can't help but feel that a full and frank discussion with an experienced professional should be your first and would be your best bet.

That would be his wife then?



or mine

[Patrick@Intouch]

There are so many variables here and I can't help but feel that a full and frank discussion with an experienced professional should be your first and would be your best bet.

Your wife's contract and working practices would need a full review with a view to assessing the IR35 status.

What are her long term intentions? Is she likely to seek further contracting work?

What is her day rate? Is it even worth considering a limited company set up.

And more areas that would need to be addressed.