Limited Company Question

[TheRightStuff]

I hear Giant are good at running LTD companies you could always go through them.

[cykophysh39]

SetUp your own Limited company and be done with it.

You're not gaining anything by going through a family members Ltd Co.
You are only creating a bigger tax headache for thier company down the road.

If investigated you will need be able to explain why "Joe's Fish and Chips" now suddenly is supplying "Software Consultancy" to "Frank's Recruitment services"

[ASB]

You could enter into a self employed arrangement (with appropriate drafted contract) bytween MyFamily Ltd and ar786.

This would improve the NI position. However the risk is then any status enquiry could determine mr/s ar786 as actual employee of my family ltd would would make them extremely unhappy when they got they bill.

The good new (from the op's point of view) is that he is absolutely safe from IR35 consequences because he cannot be a relevant intermediary [assiming that a /s/e employed person can only be a relevant intermediary for other people which is what the legislation seems to say].

[Ardesco]

Don't do it. You cannot guarantee that the money will ever get to you, lots of familes get broken up by money arguments despite the best of intentions to begin with.


Secondly unless you are made a shareholder of the company you cannot take dividends so the money that goes to you will have to have tax/NI paid on it whiche makes the whole thing rather pointless really

[ar786]

My advice would be to get a different accountant, if you find yourself asking those questions to a bunch of randoms on a forum instead of to him.

meanwhile, if you're a shareholder then you receive dividends in proportion to your shareholding.

and I don't think you can do monthly tax returns, but that might change within a couple of months of the Brown premiership.

Thanks for your reply thunderlizard

I haven't asked the accountant yet, just wanted to throw the question to the forum to see what advice/suggestions anyone may have.

[thunderlizard]

My advice would be to get a different accountant, if you find yourself asking those questions to a bunch of randoms on a forum instead of to him.

meanwhile, if you're a shareholder then you receive dividends in proportion to your shareholding.

and I don't think you can do monthly tax returns, but that might change within a couple of months of the Brown premiership.

[ar786]

I have just received my first contract and will be going through a family member's limited company, sharing the same accountant.

I would like some advice on how the whole setup would work. If I invoice the limited company on a monthly basis, how would I pay NI and Tax? Can I qualify for "low salary+dividends". How often would my tax returns be done, monthly/yearly?

Any advice would be greatly appreciated.