AIBU to want a stake in the company earning from my work?

[Osakagirl]

I have been working as a freelancer since losing my job about a year ago. I'm based in the UK and I've been working part time for various organisations overseas, invoicing through my husband's company to avoid IR35 complications. He pays me a relatively low wage and contributes to my pension.
Recently I won a much more lucrative contract for 18 days work a month, effectively full time. I won the contract entirely down to my own efforts, they only want my services and there is no other money going into the company other than what we will receive for my services. He wants to pay me the same low wage, which is about 15% of the actual amount that I'll be invoicing. At present I'm not a shareholder or director of the company.

He is keen to ensure that the business is as tax efficient as possible, but at this rate the business will be retaining 85% of profits. I've asked him to make me a shareholder and director, but he wants to wait for the next tax year. I'm worried that I'm very exposed financially, particularly as I am the only person making any money for a company owned entirely by him. I've told him that I won't agree to any contract unless he agrees to make me a shareholder and director, and otherwise I'll set up my own company.

For context, we've been married 15 years, own a house together and have two kids. He is very careful with money and generally makes good financial decisions. However, I have had several friends who have experienced financial abuse and want to ensure that I am protected, particularly as I am bringing in the income. He was not at all happy when I mentioned this, but I said it was to protect me incase he left me or something else happened. Any advice?

No help but I hope someone comes soon who can op

Why not set up your own company to use in this way?

This. Set your own company up.

Just set your own company up and change the details with payroll at your current employment. Keep a weather eye out for any further suspected FA. Id be wary about this unless you otherwise completely trust he has your best interests at heart? Even still I would not continue in this arrangement for another minute.

Don't evade tax and you won't have a problem.

Set up your own company.

Or join an umbrella company - yes you’ll be caught by IR35 but it sounds like you’ll still be accessing considerably more of your earnings.

There are tax advantages to paying yourself a low wage in this way. But none at all to you contributing to company you have no stake in.

Set up your own company, quick and easy, and get a decent accountant. Much cleaner and easier all round and you stay in complete control of it.

And if your earnings are the only things going into it, his reticence to make you a shareholder and director immediately is very suspicious to me.

If there is no money going into your husband's company other than the fees that you generate, why does he have the company? Why does he get to dictate what percentage of the fees you should receive - and what happens to the rest of the money going into this company? Is he paying himself dividends out of the money that you've earned? Does he show you the accounts for his company?

What benefit is there to you in going through his company that you would not have if you worked through your own company?

Setting up your own UK company is fairly easy. There are many accountants and Company Secretary services that will do it all for you, file your accounts with the Inland Revenue and Companies House and generally advise you about things like IR35, business insurances, how to pay yourself and how to pay National Insurance, pension contributions, income tax, corporation tax etc.

Op, set up your own company and tell your client that your company has changed.
Work with IR35. It still allows you to put a lot into your pension.
This was never going to be a satisfactory way to work.

Your husband sounds controlling and as well as thinking about changing the company you should also think about your marriage.

Unless switching company names is going to cost you this contract, it is time to become independent.

The core problem here isn’t the contract or the invoicing — it’s the power dynamic. You’re bringing in all the income, doing all the work, and keeping the business afloat, yet you have no ownership, no control, and no legal protection. He’s positioned himself as the sole beneficiary of your labour, and that’s a massive red flag.

And this goes far beyond business structure. A husband who sees you as an equal partner — in life or in marriage — would never be comfortable with a setup where you work full‑time for his company while being paid a tiny fraction of what you earn.

The fact that he’s resisting giving you any stake, even though the entire business now depends on you, shows he doesn’t see you as a business partner and, frankly, not as an equal partner in the marriage either. That imbalance is serious and shouldn’t be brushed aside.

Also, are you even being paid NMW for the hours you’re working? Because if not, that’s not just unfair — it’s unlawful. And it’s another sign that your financial wellbeing isn’t being prioritised.

You’re the one generating the income. Yet you’re left with no rights, no protection, and no say in the business you’re keeping alive.

That’s not “tax efficiency.” That’s you being financially vulnerable while he retains full control.

At this point, the real question is why you’re being asked to sacrifice your financial security for a structure that only benefits him. If he won’t give you ownership and control that reflect the work you’re doing, then protecting yourself — including setting up your own company — isn’t just reasonable. It’s the only option that safeguards your future.

Give the client new payment details for into your own private bank acct.

then deal with the tax etc another day. If your earnings for the year are likely to be under 80k you won’t benefit from having a company anyway. Just pay tax via self assessment

OP may want the Protection of a limited company. Some clients will only deal with limited company. OP could use an umbrella company if she doesn’t want the management of the company.

You probably need an accountant for advice.

Invoicing overseas companies can be quite complex with international tax (i.e. tax in the country the company is based in, in addition to UK tax). Also because you are in the UK with international clients, it is you who are liable for tax and NI contributions.

As an individual I can't see how you pass the right of substitution test for outside of IR35. Maybe that is what your partners company is doing (i.e. acting as an umbrella company), but it doesn't sound like it.

So it looks like if HMRC investigate you there may be a large bill.

I think you might be safer using an umbrella company for these contracts.

All your work is owned by his company… not ideal.

He is a selfish arsehole that is using you.

Stop tolerating it.

Start looking for other work.

Get some financial advice and don't take his word for anything.

Rethink being married to someone so comfortable using you.

Reads as if you too are being financially abused, just like your friends.

To add to the comment from @HaudYerWheeshtYaWeeBellend how are you being paid? As you appear to be an employee of your husband's company do you receive a pay slip every month showing your gross and net earnings and all the usual deductions for NI, income tax, pension etc. and a P60 at the end of the year? Do you have a contract of employment?

If he wants it to be tax-efficient, he makes you a Director so you get paid dividends after your salary takes up your tax-free allowance.

Of course, as others have said, the best thing for you to do is either invoice as a sole trader for now or set up your own limited company and he can earn his own money.

He is taking the piss.

@Osakagirl
for a company owned entirely by him.

Technically his shares are a marital asset and so you both own the company.

Not being a PSC for the conpany helps in IR35 terms (you don't want to enlist the help of an umbrella company, trust me) and being an employee while he's a director will allow you to utilise Employment Allowance to offset employers NI (£2k-5k depending on earnings) for both of you.

Also, not being a director absolves you of any liabilities arising from the company's issues (e.g. late filing penalties)

If you set up your own company it will cost you a minimum £1500 for accountancy services, £200 for filing fees and £500 for liability insurance. You will still be paying those on the other Ltd company also, even if its turning over £0.
If you're earning over 95k then you'll also have to manage VAT returns.

I would however caution about retaining most of the money as profits - unless you both already have significant income. You'll pay about 19% CorpTax on that, and then a further chunk of dividend tax when you do pay it out as dividends. Better to make employer pension contributions.

Hope that helps a bit.

That said, if you don't trust your DH with money then you have bigger problems than just this.

Sit down with him and run the numbers and challenge his reasons if needed.

You dont need to be a director to receive dividends. You need to own shares.

If there are retained profits in the company already then technically you should pay for those shares pro rata.

Can't you just be a sole trader, self employed? I am. I have clients all over the world, including some overseas companies as well as individuals. I invoice them in GBP and it is up to them to convert their currency and pay the correct amount. Just ensure that you have a couple of small jobs going for other people too, so they are not your sole source of income. And yes, of course, pay yourself properly. Set money aside for tax and NI, and opt to pay tax on income received not invoices out, so you are never taxed in advance for late or defaulted payments. It is really easy.

It costs nothing to set up as a sole trader. You just declare it on your end of year tax returns.

Before signing the new contract, you need a structure that gives you a legal economic stake in the income you're generating, either through

1. Ownership in the existing company, or
2. Contracting through your own company.

The goal is to avoid a situation where you're creating most of the value while having very little legal control over it.