The Book-keepers Forum (BKF)

Post Info TOPIC: Director of 2 Companies


Guru

Status: Offline
Posts: 1313
Date:
Director of 2 Companies


 

 

Morning all

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 nod.gif

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

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 3904
Date:

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

__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 1313
Date:

 

Hi John

Thanks for the reply and the link, very handy

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.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 8646
Date:

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.


__________________

 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



Guru

Status: Offline
Posts: 1313
Date:

 

Thanks for the reply Joanne

Having a proper look at this tomorrow so pretty sure I will be back on looking for further advice

 



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About