Reply to: Partner running limited company and being director.

[Lance]

Would be pretty hard to prove he's in breach of this. Lots of directors discuss business decisions with their spouse/partner. Proving the line has been crossed into shadow directorship would be hard, and it shouldn't be hard to stay on the right side of that line, anyway. Just talk things over and agree together.

If the two of them can't agree together on the business decisions of a one-man contracting business, they've got bigger issues in their relationship and the thing will blow up on its own.

This is probably the reason why it's been suggested. There are a lot of businesses near where I live that go pop, then start again with a brother as director but basically the same tulipshow.

[WordIsBond]

The other issue is that of shadow directorship: the OP can't be a director, the director(s) control the company, the director(s) cannot be instructed by non-directors.

Would be pretty hard to prove he's in breach of this. Lots of directors discuss business decisions with their spouse/partner. Proving the line has been crossed into shadow directorship would be hard, and it shouldn't be hard to stay on the right side of that line, anyway. Just talk things over and agree together.

If the two of them can't agree together on the business decisions of a one-man contracting business, they've got bigger issues in their relationship and the thing will blow up on its own.

[malvolio]

Legally there's nothing really stopping you. The main things to consider are what everyone else has mentioned so far - you may find yourself restricted on finding work through agencies.

The other issue is that of shadow directorship: the OP can't be a director, the director(s) control the company, the director(s) cannot be instructed by non-directors.

Best option is to go through an umbrella, sadly.

[northernladuk]

If you are planning on using a LTD to extract the cash in the most efficient method possible there are certain cases where this setup probably won't actually work very well. It will come down to details of your wife's working situation and the like so it might make more sense just to go through an Umbrella company. Less hassle and could help with the gigs where you have to be 100% shareholder etc.

[TheCyclingProgrammer]

Legally there's nothing really stopping you. The main things to consider are what everyone else has mentioned so far - you may find yourself restricted on finding work through agencies.

[whitelined]

Via agent, although agent only acting on payment intermediary. Only thing on boarding is health and safety.

[northernladuk]

Might be worth checking out the umbrella option in the short term.

[BrilloPad]

Going to provide design consultancy services for an Engineering company.

Direct or via an agent?

Any idea what the onboarding is like?

[whitelined]

Going to provide design consultancy services for an Engineering company.

[BrilloPad]

I was about to say I have never had a credit check for contract, but I did once as part of mod sc clearance. Not planning on ever working for government again.

Who are you planning on contracting for?

[whitelined]

I was about to say I have never had a credit check for contract, but I did once as part of mod sc clearance. Not planning on ever working for government again.

[northernladuk]

Certain sectors will not let you work in them again.

Finance and defence for a start.

Not wanting to be all negative as usual but I think it's going to be even worse than that.

He's not going to be able to work for ant agent that is looking for him being a major shareholder. Been a few posts about this but I don't know how widespread it is or if it's going to get worse.

Won't a bankruptcy show up on even a basic credit check? Finance and defense will be an absolute no no but won't it all also be bad news for any gig that does a basic check. What will they do? What's the point if they do a credit check and it comes back showing massive debts and a bankruptcy and they don't do anything about it?

[barrydidit]

Certain sectors will not let you work in them again.

Finance and defence for a start.

+1

[BrilloPad]

I was told by ip practitioner that best I go bankrupt with debt load, and start new company with partner's as director, and running business. It was mentioned like a thing that happens a lot, but not sure on it.

Certain sectors will not let you work in them again.

Finance and defence for a start.

[whitelined]

I was told by ip practitioner that best I go bankrupt with debt load, and start new company with partner's as director, and running business. It was mentioned like a thing that happens a lot, but not sure on it.