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contractor

(5 Posts)
livinginaparadise Fri 30-Sep-11 12:08:09

If anyone of your husband is working as a contractor(self-employed), would you give me some advice, please?

Do you have share of the company(self-employed business) e.g 50:50, 70:30
or your husband has 100 and you have 0?

My husband is working as permanent and got a contract job offer and I asked him to have ourselves 50:50 share as directors. But he says we could get HMRC's attention as a couple to pay less tax.

Another question is if my husband have 100 and can he insist all the money in the business account is his? I believe it's marital property and we both are entitled to the share regarless of how the share is divided on the document of the contract. I dont know what I believe is right...

ViviPru Fri 30-Sep-11 12:11:11

It depends if he has registered his business as a Limited Company or operating as a sole trader. Without this information it is impossible to comment on your question.

squeakytoy Fri 30-Sep-11 12:11:43

I think you are misunderstanding the concept of employment. A contract job is not in anyway ownership of the company.

ViviPru Fri 30-Sep-11 12:13:28

Yes but I think the OP's DH has a contract job and rather than being paid a wage he is invoicing them from his own company.

UKSky Fri 30-Sep-11 12:15:12

If he is self employed there is no need to have directors of the company. In fact you do not need to have a "company". He just needs to advise HMRC that he is self employed and fill in the relevant tax return at the end of the year.

If he wants to set up a company then he would be either sole trader or if you were both partners then you would be LIP & LIP T/A XXXXXX. You would then complete/have completed annual accounts and fill in a tax return at the end of the year.

The benefit to you both being partners is that you are each entitled to a tax free amount each year.

The money would be treated just the same as a wage from a permanent job but he would have to take his outgoings out of the business account first and then have an amount allocated to pay HMRC and VAT (depending on the income) and then what is left over is profit to do with as the "owner" of the business wants to.

additionally, if he is in any business where a mistake could cause him to be sued you should look at a Limited Liability Company which sets a limit on the amount you can be sued (if not the owner/directors can be taken for everything they have).

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