Set up Ltd company now have permanant job offer...

[Wanderer]

I assumed that it would raise a red flag. Would the best option be to pay a small monthly wage into next tax year or would you suggest taking the hit on tax for 2nd income for myself and wife a small wage and get everything wrapped for April..

You could sell your share in the company to your wife and then pay out any retained funds to her as dividends then shut the company down. This may be seen as a bit of an aggressive tax avoidance move though.

The other option is to apply for ESC-C16 and pay the money out as a capital distribution since you will be closing the company.

You definitely want to get some accountant's advice on this one, you could save a bit of tax if you do it right and you are going to need an accountant to shutdown the company for you anyway.

[ajw]

I assumed that it would raise a red flag. Would the best option be to pay a small monthly wage into next tax year or would you suggest taking the hit on tax for 2nd income for myself and wife a small wage and get everything wrapped for April.

Will the tax on second income be high? Sorry totally new to all this and appreciate and help given.

[Sockpuppet]

HMRC are wise to that. You can't pay her £7k for 2 months book keeping.

[ajw]

As we won't be using company againhopefully for a while, it would be nic to get wrapped up this tax year. Was hoping to get most out of wifes tax relief as no other income....

[ajw]

1st invoice paid just over £3000. Just billed £2500. Last bill will be about £2000.

[d000hg]

No you cannot pay your wife all the money in the company even though she does the book keeping. That is a £50/£100 a week job not £15k a year

So he CAN, it will just take a while

Though won't his Ltd change purpose - it'll basically be hiring his wife as PA and nothing else?

How much (roughly) has your Ltd actually billed so far?

[Sockpuppet]

Just hand your P45 over to your new employer. Set yourself up as an employee of your Ltd listing it as a second income so BR tax code.

Yes you can pay your wife. No you cannot pay your wife all the money in the company even though she does the book keeping. That is a £50/£100 a week job not £15k a year

[ajw]

Thanks for info.
I haven't as yet claimed any milage or paid myself any wages.
My quiery is can I take no wages from my ltd company and give my P45 straight to new employers and pay my wife wages from the company as she does all my admin, book keeping etc. and the end of year stuff that will be needed.

The milage claims will be for the business miles for the contracting work I have already done.

Will it matter that I will have claimed no wages from my company.

[ajw]

Thanks for info. My queiry about the milage was in relation to not taking any wages from the company but claiming my milage. Is that ok?
All the miles are in relation to the contracting I have been doing so they are business miles. Also, my wife is doing all my admin, invoicing, company books etc.
Would it be ok to not claim any wages for myself and give my P45 from company that made me redundant, to my new job?

[Clare@InTouch]

You can still claim mileage if it relates to work you're doing through the company, and pay your wife a small wage if she's actually doing anything for the company.

[ajw]

After being made redundant end of Oct I received offers of contracting work so set up Ltd company naming me and wife as directors. Have now recieved a permanant job offer that I would be mad to turn down. I have not yet taken any wages from company and still have P45 from last job.
Should I just hand my P45 to my next job and pay my wife wages from the company for doing all my admin work?
If I do this can I still claim my milage from the company?
We are both registered as directors and my wife has no other income.
There will only 2.5 months of trading for this tax year for the company.

Any help appreciated.