Just taken on a Ltd Co with 2 directors who are also 50/50 shareholders, one of the directors is wanting to open a new Ltd with just herself as director/shareholder as well as keeping the other Co going.
Going to have a chat this week to discuss matters in greater detail but the thing I am not to sure about is the payroll and the N/I situation, am I right in thinking that if it was classed as 2 separate employments then the threshold is per employment, however because of the shared ownership between of the 2 companies would this be classed as a 'business in association' and then the earnings would need to be aggregated, I believe the aggregated earnings to be correct but would like others views if possible.
I steer away from anything to do with payroll as much as I can but seem to be getting asked about it quite often lately so think it is about time to gain a bit more knowledge in that area by getting my study cap back out, I seem to remember a post on here not to long back about studying payroll so might have a look at that and get on with doing
EDIT was trying to post this earlier not sure what the problem was, probably human error
EDIT AGAIN TO CLARIFY I mean the N/I threshold not the PA
-- Edited by Artois on Saturday 16th of March 2019 10:36:35 AM
-- Edited by Artois on Saturday 16th of March 2019 10:54:26 AM
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
As far as I can ascertain Doug, aggregated NI would only apply if the two companies were associated. Does the Director intend running them together for example, using the same equipment/premises. If this is a totally separate business then I see no no need for aggregated NI.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/682420/CA44_2018.pdf from page 15 section 49 and 51 are pertinent.
EDITED to add the link
-- Edited by Leger on Sunday 17th of March 2019 12:18:39 AM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The problem that I could see was that although they are 2 completely separate Companies they will be carrying out the same work but with a different set of clients for each Company (no premises), the first being the 50/50 director/shareholders and the other being 100% run by one of these which made me think about aggregating the NI, still early days and the Company has not even been set up yet but just wanted to get an angle on the tax planning side and how best to structure it.
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi Doug
So there will be no overlap whatsoever? No cadging stock from one when the other has run out to complete a job? If the Director of both gets some work via recommendation, wonder which one he will put the work to? Could there possibily, in any shape or form, be a claim of dis-agg for VAT purposes (maybe think along same lines). What is the motivation of the Director who has a finger in each pie?
Just throwing some thoughts out there.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
