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Reply to: Both partners are contractors.
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Previously on "Both partners are contractors."
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Keep the two companies separate. Assuming you both are IT contractors, you can delegate documentation on your project and pay her company, and vice-versa. So you have a fairly low risk profile for IR35. Also 2 separate companies means that you can withdraw tax efficient funds for both of you as and when needed.
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It tends to be a matter of personal preference; we've had clients in this scenario before, some have shared a company, some have kept their own cos.
The vat FRS issue above is a valid one.
One company would simplify things a little and save costs, but would get a little more complex if you split up or one of you dies prematurely.
Re death, yes, shares transfer to next of kin, and it's probably not the biggest problem a bereaved person will face, sorting out deceaseds company.
HTH
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If you combine your company's, you will likely be forced out of the FRS due to the £230K limit.
Why not for an LLP instead?
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Originally posted by bobbyeightball View PostThanks for the info guys.
We're both project based so sit outside IR35
To be honest, I'm surprised that the consensus appears to be to keep everything seperate. It's certainly the prefered route for us, but just wanted to see if there was anything we hadn't thought of
Anyone know of what happens if one of us gets to meet the big guy upstairs while there's still money in the business? Do the shares automatically go to the next of kin of the sole share holder or does there need to be something in place?
http://forums.contractoruk.com/accou...lls-death.html
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I think you may move yourself off the radar. The fact is there are thousands and thousands of small co's so there is no way that HMRC are going examine everyone in detail, obviously they need some filtering criteria. No-one knows what that is, but obviously it will be designed to throw up one man co's, because that's where most "avoiders" are, so anything that will change the "shape" of the company's profile might just move you out of the search list.
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Thanks for the info guys.
We're both project based so sit outside IR35
To be honest, I'm surprised that the consensus appears to be to keep everything seperate. It's certainly the prefered route for us, but just wanted to see if there was anything we hadn't thought of
Anyone know of what happens if one of us gets to meet the big guy upstairs while there's still money in the business? Do the shares automatically go to the next of kin of the sole share holder or does there need to be something in place?
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Originally posted by bobbyeightball View PostYou're correct that there is no connection, but I'm wondering if the JointCo would look better as it would have more than one employee, be offering more than one professional service and have more than one concurrent client?
Also it's 2012 and we're on similar rates so it's us spending our money rather than my missus getting a free ride
And to be honest, even if she could sub you, I'll still leave the two Co's separate. She can sub via her own Co and invoicing yours, if that situation ever arose.
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You're correct that there is no connection, but I'm wondering if the JointCo would look better as it would have more than one employee, be offering more than one professional service and have more than one concurrent client?
Also it's 2012 and we're on similar rates so it's us spending our money rather than my missus getting a free ride
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I am intrigued to know why a change in your personal circumstances automatically means their has to be a change in your business ones? They are not connected so why change them just because you are getting married?
The savings on accountants and the shared stuff is negligble against the problems of different incomes and distribution if people are on the bench and stuff.
Leave your business situation as it is and let the soon to be missus spend all your personal money as she sees fit
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Keep the Limited companies separate.
(Could add sooo much more but very aware that this is a Professional forum )
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Both partners are contractors.
Hello!
Both my girlfriend and I are contractors and are looking to get married soon, so while she's worrying about dresses and venues, I'm looking into the more important stuff like how our respective Ltd Companies should be set up.
There's lots of advice around for a non-working or lower tax paying spouse but very little for if both partners are contractors.
I'm wondering if it's best to bring everything into OneCo or keep everything seperate. So apart from the obvious savings on accountants fees or it being easier during the divorce, is there any advice out there that the learned members of CUK would be willing to impart?
Kind regards
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