Bringing in another contractor under your LTD

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Jessica@WhiteFieldTax replied

15 January 2013, 14:21
Originally posted by Clare@InTouch View Post

A subbie, so he has to complete a tax return to declare the income and he's only marginally better than being brolly

And additionally employment status risks parked on OP!

Not worth it unless there is a good margin for the risk.
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Notascooby replied

15 January 2013, 14:15
Originally posted by northernladuk View Post

Not sure admitting you couldn't be bothered to research your question properly is for my benefit...

http://forums.contractoruk.com/accou...our-ltd-2.html

You must spread some Reputation around before giving it to northernladuk again.

Thanks though...
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northernladuk replied

15 January 2013, 12:59
Originally posted by Notascooby View Post

OK for NLUK's benefit - my searches were feable but I couldn't think of a great search term...

Not sure admitting you couldn't be bothered to research your question properly is for my benefit...

http://forums.contractoruk.com/accou...our-ltd-2.html
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Notascooby replied

15 January 2013, 12:53
Thanks - at first I thought it was a good idea then not so....
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Clare@InTouch replied

15 January 2013, 12:47
I don't see the benefit to be honest, it's just hassle for you (unless you pimp him out for less than you give him). In order for him to be paid by your company he'd have to be:

A shareholder so he could get dividends, but that would mean giving him ownership of part of your company
An employee, so he's no better than going through a brolly and he has employment rights from your company (holiday, sickness etc)
A subbie, so he has to complete a tax return to declare the income and he's only marginally better than being brolly
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Notascooby started a topic Bringing in another contractor under your LTD

15 January 2013, 12:37
Bringing in another contractor under your LTD
**WARNING - Contains random brain dump**

OK for NLUK's benefit - my searches were feable but I couldn't think of a great search term...

There's an oppertunity for a 3 to 6 month piece of work where I know someone that is perfect the role. he's in perm just now but is looking to leave so this could be a stop-gap whilst he looks for another perm role (if he decides to do so after contracting).

So the options are [LIST]he goes LTD - but a lot of hassle for 6 months[LIST]he goes brolly - take home isn't as good
he uses my LTD and I sub him in

So what's the downsides of option 3?

Example - my LTD charge client co via agent £550 per day, I then pay CT , VAT etc and then expense say a net payment of £400 per day to other person, they have a self assessment to fill out.

Actually sounds like they'd be better off going brolly - anyone actually thought this through?
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