Can Limited Company Secretary contract themself

[Mustang]

I was thinking if we both contract under the one company name then it would better meet IR35 tests.

It depends - AFAIK it would only help if you were in the same business. If, for example, you are in IT and she wanted to be a freelance florist it might not help. In addition, in the example above, it might complicate registration at Co House since you would be in 2 different company classifications.

Remember - I am not a lawyer/accountant!

HTH

[ASB]

I didn't know that. Can that person get the dividend at a later date (the next year for example). And if they don't, does that extra money count towards future profit/dividends?

If you are thinkg of doing it you might want to read this:-

http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM4225.htm

You can find wording here:-

http://www.rossmartin.co.uk/Archive/...v%20waiver.htm

From the accounting point of view it simply reduces the total dividend paid out. It is not income to the company.

[VectraMan]

No. Any shareholder can waive the right to some or all of their dividends.

I didn't know that. Can that person get the dividend at a later date (the next year for example). And if they don't, does that extra money count towards future profit/dividends?

[ASB]

If we held equal shares do we have to take equal dividends?

No. Any shareholder can waive the right to some or all of their dividends.

Be warned though, this might not be a particularly wise thing to do from a view of the settlements legislation. There is also a school of thought which says that if the company was unable to pay the dividend on all the sdhares without a waiver it is getting on very very thin ice.

e.g. distributable reserves 20k. Two shareholder with 1 share each, 1 waives 10k divi is OK - since that would be fundable to all shareholders. Anything over would not be fundable to all shareholders.

[BA to the Stars]

Indeed a shareholder does not have to be employed by the company. Have a look at some of the first timer stuff in the CUK navigation bar - very useful & reader friendly. Good luck

[Euro-commuter]

Thanks for your prompt answers.

If I've understood your posts, my wife could be the Company Secretary, I can push her out to work, and as long as she holds shares she can draw a dividend. If we held equal shares do we have to take equal dividends?

I was thinking if we both contract under the one company name then it would better meet IR35 tests.

Remember that dividends are NOT a reward for work; they are a share of the company profits. So a shareholder will receive a proportional share of any dividend paid, quite independently of whether she does any work or not.

[Euro-commuter]

Equal shares then equal divis. It's only fair.

It's the law. And it makes sense: as in "share".

[maverick]

If we held equal shares do we have to take equal dividends?

Equal shares then equal divis. It's only fair.

[MrRobin]

To draw dividends she needs to be a shareholder, nothing to do with being a director.

Oh yes. Pardon my retardness.

[Paddy]

She can be a secretary as well as adirector. You can file online.

[NewMan]

Thanks for your prompt answers.

If I've understood your posts, my wife could be the Company Secretary, I can push her out to work, and as long as she holds shares she can draw a dividend. If we held equal shares do we have to take equal dividends?

I was thinking if we both contract under the one company name then it would better meet IR35 tests.

[VectraMan]

To be able to draw dividends, she would have to become a director.

Is there a smiley for that Family Fortunes noise?

To draw dividends she needs to be a shareholder, nothing to do with being a director.

Also nothing to stop her starting her own contracting company, and you being her Co. Sec. for that (which might be a better answer than both using the same).

[MrRobin]

No. As an employee of your company you can ship her out to work to earn the company money. She would only be able to be paid like an employee though - i.e. through PAYE. To be able to draw dividends, she would have to become a director.

[xoggoth]

Can't see any reason why she can't.

[NewMan]

I'm in the process of getting myself set-up to start a first contract. Probably going the Limited Company route. If I'm Director and make my wife Co Secretary, does this exclude her from being able to contract herself at a later date? Would she have to become a director beforehand?