Spouse contract thru MyCo or NewCo - MVL implications?

[PBandJ]

Thanks NLUK.

Understand the sentiment behind that. Obviously prudent to look at all scenarios, including worst case.

Notwithstanding that point though, any thoughts on the query as set out or other considerations?

[northernladuk]

Personally, apart from the rules, if she's bringing in enough I'd be starting a new company just to keep business separate to life. We've seen more than enough tales on here of husband and wife companies going wrong when they split to make a little extra overhead to keep them separate a good idea.

Keeping them separate removes all the other complexities such as this as well.

Just my tuppence worth.

[PBandJ]

Hi all

Long time lurker, first time poster.

Looking some for advice/if anyone has been in a similar position.

My wife started contracting through my company last year, initially 1 day per month but increasing to 3 days a week from Feb. She’s a director, also a shareholder and this is her only source of income. (This was done as was only supposed to temporary so didn’t want to go through setting up and running a second company for 1 day a month…)

As a result we’ll end up with a lot of surplus in the business this year and all subsequent years.

At some point in time I might stop contracting and go perm, and as a result have a choice of leaving the money in the business to be drawn down at a later date or take out immediately through MVL.

1) If I applied for MVL would my wife (as a director of a soon-to-be insolvent company) be ineligible to start up her own company for 3 years?

2) Would it make more sense for my wife to set up her own company now and run her contracting through that (instead of mine) so that if I need to close down my company down I could do so without impacting her? Would I need to remove her from directorship and/or shareholding?

FYI – accountants have been asked, but thought I’d check with the hive mind too.

TLDR: should wife get own company for contracting? If I MVL MyCo will wife as MyCo Director be impacted by 3 year rule and can't start up NewCo?

Thanks in advance

PBaJ