Hi all
I've been searching round the archives for info on this but have been unsucessful so hoped that someone could help with a query.
I'm just about to get into contracting, having worked permie all my life. As a newbie to this arena I've spoken to a number of colleagues who have set up Ltd companies and are going the usual dividend route. I have no real knowledge of IR35 other than what I've read on the HMRC website and it all looks very grey i.e. my role could be considered similar to that of a regular employee but as a contractor I cannot park on site, have no legal rights, pension, leave, meeting obligations, company responsibility, promotion, payrises etc. etc.
I realise this is/has probably been a hot topic already so don't want to start up any debates on this (and appreciate my opinions on IR35 above may not be entirely relevant with actual IR35 compliance) but could do with some advice on what I'm thinking of doing.
Can anyone advise on whether it is still possible to set a Ltd company and still employ my wife to do the books, but to pay her a reasonable salary for her work? Unfortunately she was made redundant but conveniently has over 20 years of finance/book keeping experience. Thus it would seem logical for her to work for me legitimately and to get paid a salary for doing so.
In terms of the dividend issue I am not particulary fussed about using these to the max in order to minimise tax/NIC's so am ok to litterally have zero dividend and to accept all income as salary (for me and my wife). I realise this probably sounds ludicrous as the whole point of the dividend route is to minimise NIC's etc. However, with the fear of IR35 etc. looming over my head would rather do it all so that I have complete peace of mind.
However I'm not sure if this is possible or still considered to be the wrong way of doing things. Thus any advice would be greatly appreciated.
Many thanks
Stressman
I've been searching round the archives for info on this but have been unsucessful so hoped that someone could help with a query.
I'm just about to get into contracting, having worked permie all my life. As a newbie to this arena I've spoken to a number of colleagues who have set up Ltd companies and are going the usual dividend route. I have no real knowledge of IR35 other than what I've read on the HMRC website and it all looks very grey i.e. my role could be considered similar to that of a regular employee but as a contractor I cannot park on site, have no legal rights, pension, leave, meeting obligations, company responsibility, promotion, payrises etc. etc.
I realise this is/has probably been a hot topic already so don't want to start up any debates on this (and appreciate my opinions on IR35 above may not be entirely relevant with actual IR35 compliance) but could do with some advice on what I'm thinking of doing.
Can anyone advise on whether it is still possible to set a Ltd company and still employ my wife to do the books, but to pay her a reasonable salary for her work? Unfortunately she was made redundant but conveniently has over 20 years of finance/book keeping experience. Thus it would seem logical for her to work for me legitimately and to get paid a salary for doing so.
In terms of the dividend issue I am not particulary fussed about using these to the max in order to minimise tax/NIC's so am ok to litterally have zero dividend and to accept all income as salary (for me and my wife). I realise this probably sounds ludicrous as the whole point of the dividend route is to minimise NIC's etc. However, with the fear of IR35 etc. looming over my head would rather do it all so that I have complete peace of mind.
However I'm not sure if this is possible or still considered to be the wrong way of doing things. Thus any advice would be greatly appreciated.
Many thanks
Stressman
Comment