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Mrs Nicholls

  • Posts: 432
family members or partners working for me
« on: September 19, 2008, 06:02:55 pm »
Hi everyone

Hope the crunch hasnt hit everyone too hard.

I just wondered if anyone knew anything about employing partners / family members, my partner is going to be helping me out a bit and as he is my partner - soon to be hubby lol do i have to employ him? and when we are married is he automatically a partner in my biz? i'm a bit confused by all this, can anyone shed any light??

Many Thanks
Lisa
xxx

LWC

  • Posts: 6824
Re: family members or partners working for me
« Reply #1 on: September 19, 2008, 07:26:43 pm »
just get him to go self emplyed like you and work with you

BDCS

  • Posts: 4777
Re: family members or partners working for me
« Reply #2 on: September 19, 2008, 07:35:30 pm »
I do no more than just pay my partner £5000 pa which happens to be approx the tax ceiling. The only problem comes when I have to disciplin her - I do it by the book so our 3 year old takes the minutes ;D

Fox

  • Posts: 824
Re: family members or partners working for me
« Reply #3 on: September 20, 2008, 10:39:24 am »
You can employ your partner just like anyone else but do you really want too?  Remember all the trouble you had with your 'friend'.

No when you marry he does not automatically become entitled to any of your business, depending on how you operate depends on how you do it for example if you are ltd you would need to give him shares.

Fox

DREAM CLEAN

  • Posts: 619
Re: family members or partners working for me
« Reply #4 on: September 21, 2008, 11:58:36 am »
lisa,

Please do not do it , it does not work,
After sex what will you have to talk about?
Nick

cml

  • Posts: 181
Re: family members or partners working for me
« Reply #5 on: September 23, 2008, 08:07:36 am »
Partner does not automatically become your partner.  However taking it one step further and no offence intended.  If you get married and then divorce then other factors come into play.  Meaning can your then hubby place a claim to your business.  Depends if he makes financial contributions etc.,  keep it simple, start as you may aim to go on and keep it strictly as an employment arrangement between employer and employee disregarding the fact that he is your partner/husband.

(Working together can put a strain on your relationship especially when having to enforce company rules) So think very carefully. 

DavyP

  • Posts: 35
Re: family members or partners working for me
« Reply #6 on: September 23, 2008, 12:14:03 pm »


Bit of negativity here, don't look at the doom and gloom side of things.

There are a few options available to you:

1. Operate as a sole trader, treat your partner as an employee.  You can take advantage this way of the tax threshold and increase his wages as you get nearer to the 40% band this way you avoid paying more tax.

2  Set up as a limited company, once you earn over £60,000 per annum then it is absolutely necessary to register for vat.  It is a good idea to do this in the first year as this is when you'll make the most purchases i.e Van, computers, office furniture, accounts software, equipment etc.  You can then claim the vat back.

Some will argue you will also have to charge Vat on your prices and it will make you less competitive, but if youre aiming at the commercial market, bear in mind they are vat registered and so claim all the vat they pay out back.

As a limited company, you take a wage out of the company each month, one for you, one for your partner.

If you require more money, you take it out as a directors dividend, this is taxed at a lower rate than your wage thus you pay less tax.

This is a brief explanation and a good accountant will give you proper guidance.

Mrs P is an accountant and in her practice going limited is being pushed as the best way to pay less tax.



garyj

Re: family members or partners working for me
« Reply #7 on: September 23, 2008, 01:45:07 pm »
It could be argued that an accountancy firm will have an interest in a company becoming Ltd as it does mean more work and therefore more money for them.

I don't think anyone is being negative here we have just got to 'know' Lisa over the years and know of past problems with business partners.

DavyP

  • Posts: 35
Re: family members or partners working for me
« Reply #8 on: September 23, 2008, 03:44:17 pm »


The only additional cost is in the setting up of the limited company, otherwise the costs are the same.  The tax saving far out ways these initial costs.

As for the past problems, give lisas fiancee a chance, they're getting marred ffs and its being wrote off left right and centre before they've crossed the isle. 

You may have had a point if my input was not impartial and in the original posters interest.

Anyway I hope this clears that up I'll assume no offence was meant by your ill worded post. ;D