Reply to: Choosing the right accountant

[Bluebird]

What if the contract rates for my spouse are not significant? Would having my spouse on PAYE (no shareholding) in my limited company make more sense than the umbrella route? Much less to pay to the accountant than umbrella I woul imagine.

Yes, that would make a lot of sense, however you would need to ensure that the contracts are ok.

Some clients may not want to deal this way for temp workers...

[balaplus]

What if the contract rates for my spouse are not significant? Would having my spouse on PAYE (no shareholding) in my limited company make more sense than the umbrella route? Much less to pay to the accountant than umbrella I woul imagine.

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Looking for new accountant

Have been with SJD for a couple of year now and they have been getting steadily worse at responding to communications and providing information in time.

There are several issue with them but suffice to say I am now looking for a new account

[bflpm]

Choosing an Accountant

Have been with SJD for a couple of year now and they have been getting steadily worse at responding to communications and providing information in time.

There are several issue with them but suffice to say I am now looking for a new account

[malvolio]

Thanks for replies!

If I decide to go permie and transfer all shares to my spouse in my ltd company once she has got her new contract, will my company still get any hassle from HMRC? It means that she will become the only one director in my Ltd company if I resign. I know it sounds complicated. At least, we can save some money to setup another new ltd.

Actually, I am not sure that it is a wise way to do if I sell my company to her rather than closing it. or I just close my company and let her setup a new ltd if I go back to permie. Any comments?

Don't, it won't work. The only safe way is to have your own company and a 100% shareholding - any other variation will attract some kind of threat from HMRC. And when all else fails, there's always IR35...

The whole point is that they do not see us as having businesses for any other reason than to save tax. They ignore the long list of extra costs and missed benefits we fund for ourselves. They also ignore their own damn silly law - S134c as was - that's makes us have LtdCos in the first place and not work as sole traders.

[Bluebird]

Thanks for replies!

If I decide to go permie and transfer all shares to my spouse in my ltd company once she has got her new contract, will my company still get any hassle from HMRC? It means that she will become the only one director in my Ltd company if I resign. I know it sounds complicated. At least, we can save some money to setup another new ltd.

Actually, I am not sure that it is a wise way to do if I sell my company to her rather than closing it. or I just close my company and let her setup a new ltd if I go back to permie. Any comments?

you can set up a new ltd co for about £30...

[clwd]

Thanks for replies!

If I decide to go permie and transfer all shares to my spouse in my ltd company once she has got her new contract, will my company still get any hassle from HMRC? It means that she will become the only one director in my Ltd company if I resign. I know it sounds complicated. At least, we can save some money to setup another new ltd.

Actually, I am not sure that it is a wise way to do if I sell my company to her rather than closing it. or I just close my company and let her setup a new ltd if I go back to permie. Any comments?

[Bluebird]

My general advice would be to have separate companies.

The proposed rules on "income shifting" will have an impact on company set ups with two working spouses, and there will be added confusion when one of yoiu ceases working through it, or one dramatically changes their earnings.

The additional costs of having another company is not much greater although this depends on what your accountant charges.

I hope this helps.

Alan

should also be interesting if Mrs Own-Co's ltd co provides services to Mr Own-Co's ltd co in the form of accountancy services or admin support [ or the other way around ] - could be that Mr Own-Co actually ends up paying income tax on money that he has paid out !!!

[Nixon Williams]

Should my spouse (new director) join my existing ltd company for saving cost or setup her own new company in order not to get any hassle or attention from HMRC? Which one is the best tax efficiency if both of us are fee earner?

I am a bit confused that my current accountant advised me to let my spouse join my ltd company but another accountant suggested my spouse setting up a new ltd for not getting any hassle from HMRC if one of us does not work?

Not sure which way we should go. Any suggestions appreciated.

My general advice would be to have separate companies.

The proposed rules on "income shifting" will have an impact on company set ups with two working spouses, and there will be added confusion when one of yoiu ceases working through it, or one dramatically changes their earnings.

The additional costs of having another company is not much greater although this depends on what your accountant charges.

I hope this helps.

Alan

[malvolio]

Should my spouse (new director) join my existing ltd company for saving cost or setup her own new company in order not to get any hassle or attention from HMRC? Which one is the best tax efficiency if both of us are fee earner?

I am a bit confused that my current accountant advised me to let my spouse join my ltd company but another accountant suggested my spouse setting up a new ltd for not getting any hassle from HMRC if one of us does not work?

Not sure which way we should go. Any suggestions appreciated.

Who knows, in this post-Arctic world of mythical taxation. If she is a co-director and fee-earner and one of you is on the bench for a while, you might find the other one paying tax on your total dividend income as though it was their own. Separate things into two companies and exactly the same thing might happen, although this time because HMRC will ignore the two companies under the "connected persons" concept. Or neither may happen. Or something completely different.

Plus of course, it's already happening since the new rules are in effect from April 2008 and will be based on 2007 income, regardless of what they actually are.

Which is why the whole Income Splitting debacle is just that - a debacle of the first order. And why nobody knows what the hell to tell anyone.

[clwd]

We have never operated as a MSC or indeed offered an umbrella service, we are accountants, always have been.

Alan

Should my spouse (new director) join my existing ltd company for saving cost or setup her own new company in order not to get any hassle or attention from HMRC? Which one is the best tax efficiency if both of us are fee earner?

I am a bit confused that my current accountant advised me to let my spouse join my ltd company but another accountant suggested my spouse setting up a new ltd for not getting any hassle from HMRC if one of us does not work?

Not sure which way we should go. Any suggestions appreciated.

[Nixon Williams]

How about Nixon Williams as their fee is reasonable? Are they good? I would like to know whether they are pre-MSC provider or not?

We have never operated as a MSC or indeed offered an umbrella service, we are accountants, always have been.

Alan

[r0bly0ns]

I've had no dealings with Nixon's myself, but have heard good things about them on here.

I believe they charge roughly the same as Uptons

[clwd]

We are using UptonAccountants, we have 2 directors, both fee earners.
We do our own invoicing and our own banking.

Our accountants advise is what to do with our money, they also create the wage slips for us and do our tax returns.
But ultimately it is up to us to actually pay the money to Employees / Customs / HMRC where required, and to ensure we get paid by our clients. After all it is our company

For this we pay around a third of what you have been quoted (plus VAT)

Thanks. Both of us are fee earners and prefer to do our invoicing and banking.

How about Nixon Williams as their fee is reasonable? Are they good? I would like to know whether they are pre-MSC provider or not?

[r0bly0ns]

However, if they are shareholders and fee-earners also, you are looking a lot more work. Probably twice as many customer invoices and payments, twice as much dividend paperwork, more discussion/consideration about remuneration packages, profit splits, etc, especially if both directors don't bring in exactly the same fees each. I can see that 50% of the normal fee for an additional shareholder/fee earner is fairly realistic.

Your accountant does your invoicing and banking for you?
Sounds more like an MSC than an accountant to me.....

It is so cheap! Which accountancy firm are you using? I only requested to add a director in my company but don't understand why it is so costly. Does my accountant reall get involved in a lot of admin work for adding a new director? Any comments?

We are using UptonAccountants, we have 2 directors, both fee earners.
We do our own invoicing and our own banking.

Our accountants advise is what to do with our money, they also create the wage slips for us and do our tax returns.
But ultimately it is up to us to actually pay the money to Employees / Customs / HMRC where required, and to ensure we get paid by our clients. After all it is our company


For this we pay around a third of what you have been quoted (plus VAT)