Employment Contract for spouse?

[pleomax]

I am not expert in these things but by reading the info on IR35 on this site I can see in now way does my contract fall outside of IR35!

Next gig I will be negotiating hard to hoopefully take it outside.

Pleomax

[blacjac]

Even if I am caught under IR35 do I have to pay myself the 95% of the contract value?

Only if you are IR35 caught......

[ASB]

Even if I am caught under IR35 do I have to pay myself the 95% of the contract value?

[pedant]Anybody who says yes is simply wrong. you don't. But you still get taxed on the basis that you had.[/pedant]

[Robot]

Even if I am caught under IR35 do I have to pay myself the 95% of the contract value?

Yes ...

£95K, could be made up of travel and subsitence, pension, PII, the balance would be gross salary and employers NI, or maybe you have no expenses and it is the full £95K as gross salary and Employers NI.

You need to speak to an accountant ASAP, or stay with your sh*t umbrella company.

Robot

[pleomax]

Even if I am caught under IR35 do I have to pay myself the 95% of the contract value?

[NotAllThere]

Why would spouses wages fall into running cost but not mine?

Thank you all for being so patient with me asking stupid questions.

Pleomax

Because your wages come out of the 95%.

Take the total value of the contract .e.g. £101,000. Deduct travel and subsistence expenses of £1000 = £100,000. You have to pay yourself the salary that costs your company (including the employers NI), £95,000. The remaining £5000 covers all costs, as listed above.

[Bunk]

Why would spouses wages fall into running cost but not mine?

Thank you all for being so patient with me asking stupid questions.

Pleomax

Your salary comes from the other 95%, which you have to take as salary because you're caught by IR35.

[pleomax]

Why would spouses wages fall into running cost but not mine?

Thank you all for being so patient with me asking stupid questions.

Pleomax

[Robot]

I am setting up a ltd company as my brolly sucks. Do i need to have an employment contract for my wife if she is going to do my administration, and get paid for it? She is not working at the moment and I am looking at her doing part time work for me and attracting a salary under the tax allowance.

I am caught by IR35 if that has any bearings on this.

Also I am trying to get a new gig at a company i worked at 8 years ago as a permie and think that i will have to supply my own hardware, I am right in thinkign that I will be able to claim this back once my Ltd is up an running? My ltd will be used as the vehicle for my current contract also.

Pleomax

"I am caught by IR35 if that has any bearings on this."


Lots, you can only have running costs of 5% of the turnover, if turnover is £60K, you have £3k running costs (+bank interest received). Running costs would be bank charges, accountancy fees, computer consumables, mobile phone and your spouses wages ... don't see your spouse being paid a lot do you?

If you spend more than the 5% then any loss would have to be covered by your net salary!

[pleomax]

Is there a resource online where one could download template contracts for such a purpose? (I know google is your friend and all taht but someone may save me some time)

Many Thanks

Pleomax

[QwertyBerty]

I am setting up a ltd company as my brolly sucks. Do i need to have an employment contract for my wife if she is going to do my administration, and get paid for it? She is not working at the moment and I am looking at her doing part time work for me and attracting a salary under the tax allowance.

I am caught by IR35 if that has any bearings on this.

Also I am trying to get a new gig at a company i worked at 8 years ago as a permie and think that i will have to supply my own hardware, I am right in thinkign that I will be able to claim this back once my Ltd is up an running? My ltd will be used as the vehicle for my current contract also.

Pleomax

Yes a contract of employment would show your company is serious about doing things the right way.

Yes you can claim back equipment costs using Capital Allowances (or AIA this year).

QB.

[pleomax]

I am setting up a ltd company as my brolly sucks. Do i need to have an employment contract for my wife if she is going to do my administration, and get paid for it? She is not working at the moment and I am looking at her doing part time work for me and attracting a salary under the tax allowance.

I am caught by IR35 if that has any bearings on this.

Also I am trying to get a new gig at a company i worked at 8 years ago as a permie and think that i will have to supply my own hardware, I am right in thinkign that I will be able to claim this back once my Ltd is up an running? My ltd will be used as the vehicle for my current contract also.

Pleomax