Limited company setup for husband and wife who are both IT contractors

[dl8860]

My lips are salviating with the thought of two people getting outside ir35 money into one pot !!

have one Ltd company. Leave as much in the company as retained profits and buy a property to generate retirement cash. I’ll give some more insights in the weekend

hope I do not get banned for helping others on the forum

This is the strangest post.

Your lips are producing saliva?
Why is two people generating income into a single LTD so much more lip lickingly good to you than two people generating that into two single LTDs?
If you are paranoid about the ban hammer to the point of writing passive aggressive things like the last line of this post then it's probably just a matter of time.

More insights to come on the weekend!?

[Protagoras]

Over 20 years ago, my accountant's advice was to use one company, and this model worked out okay for the lifetime of the business.

OP's circumstances may differ, while the liability landscape is rather different these days, given possible ch.10 indemnities sought by supply chains.

[northernladuk]

Consider the commerciality of the set up too from an insurance point of view and any possible claims against either of your work and how that may affect the others contract or position. As a general rule of thumb, I'd offer a suggestion to keep things nice and simple and each have your own limited company.

Nothing personal but I always ask the question "do you trust your partner?" if it's a spouse + spouse set up under one limited company. I've seen many a times when the answer is yes but then it goes sour and the whole thing gets a little messy when splitting assets etc. Same goes for non-relationship structures where you have two mates joining going into venture together. Under those circumstances, I always suggest a proper shareholders agreement in place "just in case".

We will never get divorced, said every divorced contractor ever.

[Craig@Clarity]

Consider the commerciality of the set up too from an insurance point of view and any possible claims against either of your work and how that may affect the others contract or position. As a general rule of thumb, I'd offer a suggestion to keep things nice and simple and each have your own limited company.

Nothing personal but I always ask the question "do you trust your partner?" if it's a spouse + spouse set up under one limited company. I've seen many a times when the answer is yes but then it goes sour and the whole thing gets a little messy when splitting assets etc. Same goes for non-relationship structures where you have two mates joining going into venture together. Under those circumstances, I always suggest a proper shareholders agreement in place "just in case".

[Maslins]

Thanks for your responses. Yes, she has secured an Outside IR35 contract. Looking at some of the discussions on the links, the opinion seems to be mostly divided (same co vs diff co).

Yup. There's mixed views on this. Generally two main options:

1) just have one company, which you own 50:50. Benefits are:
- just one company (so one lot of admin/accountancy fees)
- if your earning power is very different, you can still split personal income 50:50, which tends to be better for personal tax.

2) have a company each. Benefits are:
- easier to deal with when circumstances changes (eg one of you gets a permie role...or you separate )
- can each make your own decisions, to benefit your personal/business circumstances. Eg if one of you sells to corporates, the other to Joe Public, the latter can stay non-VAT registered (if turnover sub £85k) whilst the other registers. That's not possible with one joint company.

[Paralytic]

You've not helped anyone yet, so it will be a change when you start.

You're starting from an imaginary point of know what their incomes are, know what their outgoings are, knowing what their plans are and projecting your own morals, ethos and preconceptions on to them.

And making a recommendation to get into BTL when it could potentially be the worst point in time over the last 10-15 years to do so.

[WTFH]

hope I do not get banned for helping others on the forum

You've not helped anyone yet, so it will be a change when you start.

You're starting from an imaginary point of know what their incomes are, know what their outgoings are, knowing what their plans are and projecting your own morals, ethos and preconceptions on to them.

[northernladuk]

My lips are salviating with the thought of two people getting outside ir35 money into one pot !!

have one Ltd company. Leave as much in the company as retained profits and buy a property to generate retirement cash. I’ll give some more insights in the weekend

hope I do not get banned for helping others on the forum

I hope you do because it's just gonna be another post you throwing numbers around and demonstrating your utter greed that is not helpful to anyone.

No need for your pointless insights thank you.

[NowPermOutsideUK]

My lips are salviating with the thought of two people getting outside ir35 money into one pot !!

have one Ltd company. Leave as much in the company as retained profits and buy a property to generate retirement cash. I’ll give some more insights in the weekend

hope I do not get banned for helping others on the forum

[Lance]

1) ask your accountant. I know that's a trite answer but it's correct.
2) 50/50 share split and take it from there. Make her a director. She'll probably have to buy her shares for a nominal value.
3) get a shareholder and directors agreement drawn up by a solicitor. What happens when one of you dies? What if you divorce?

[pali2022]

Thanks for your responses. Yes, she has secured an Outside IR35 contract. Looking at some of the discussions on the links, the opinion seems to be mostly divided (same co vs diff co). As suggested, I would wait for my accountant to come back and advice. Thanks once again.

[northernladuk]

Hi all,

I tried researching online about the best course of action on Limited company setup for Husband and Wife who are both into IT contracting but the most I could find was of setup where wife isn't working but added to the company as secretary. I also found one post on this forum but was last discussed in 2011 and I am assuming much water has flown under the Thames since then.

Did you use the forum search at the top or the Google search. The former is useless. Go to google and type in <keywords> Site:forums.contractoruk.com . I'm sure we've had questions about husband and wife contractors before. Just have to play with the keywords.

My situation is as follows: Running a IT limited company since 2013 as the sole director. Wife is also in IT but was in permanent employment so far. She has now decided to move into IT contracting. I am assuming the best course of action is to add my wife as an additional director to my own limited company but any views of experts in this area would be very much appreciated. I have emailed my accountant for advice but she is on holiday at the moment and would be back only after the half-term break. So I wanted to get some opinions before hand. Thanks in advance.

Has your wife got a contract yet? Odds are it's more likely to be inside than outside and if so you can't put her through the LTD so you've no decision to make for now.

We don't really know your situation so getting advice from someone that has as setup like yours is an opinion at best but nothing wrong with getting options. Your accountant is best placed to look at your exact situation and finances and advise ultimately.
Are you with a one person company? Is it not big enough for another accountant in the practice to advise?

Edit : I had a quick play and found these as examples. They of any use? There are more out there so play with the keywords
https://forums.contractoruk.com/busi...s-one-ltd.html
https://forums.contractoruk.com/busi...d-company.html

[GregRickshaw]

Hi all,

I tried researching online about the best course of action on Limited company setup for Husband and Wife who are both into IT contracting but the most I could find was of setup where wife isn't working but added to the company as secretary. I also found one post on this forum but was last discussed in 2011 and I am assuming much water has flown under the Thames since then.

My situation is as follows: Running a IT limited company since 2013 as the sole director. Wife is also in IT but was in permanent employment so far. She has now decided to move into IT contracting. I am assuming the best course of action is to add my wife as an additional director to my own limited company but any views of experts in this area would be very much appreciated. I have emailed my accountant for advice but she is on holiday at the moment and would be back only after the half-term break. So I wanted to get some opinions before hand. Thanks in advance.

Not an expert by any means (on anything - except perhaps the band behind my profile pic)

Some ideas you haven't already suggested.

Maybe have your wife have her own LTD company?

She could be an employee of your LTD company.

Others will advise much better I'm sure especially your accountant

[pali2022]

Hi all,

I tried researching online about the best course of action on Limited company setup for Husband and Wife who are both into IT contracting but the most I could find was of setup where wife isn't working but added to the company as secretary. I also found one post on this forum but was last discussed in 2011 and I am assuming much water has flown under the Thames since then.

My situation is as follows: Running a IT limited company since 2013 as the sole director. Wife is also in IT but was in permanent employment so far. She has now decided to move into IT contracting. I am assuming the best course of action is to add my wife as an additional director to my own limited company but any views of experts in this area would be very much appreciated. I have emailed my accountant for advice but she is on holiday at the moment and would be back only after the half-term break. So I wanted to get some opinions before hand. Thanks in advance.