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Thanks everyone for your rapid responses. You have really helped us in making a decision. It turned out to be the 4th option we didn't consider in the original post.
Good point. If I understand correctly, in the given example, ABC Software Ltd is already VAT registered. Therefore, we would have to pay VAT on all earnings - which I personally charge it to the client in software contracts but I can't imagine it would work well in this scenario.
Self Employed...
Thanks a lot. We both agreed that having two sets of companies is not the way so thanks for helping us rule out Option 2. Being self employed / a sole trader seems to be a good option.
Nice 4th option. We didn't even think about that. I think we would both like to deliver services via a ltd company but it certainly worth considering going with the self employed route to start with because it equals 0 work initially as she is already registered as self employed.
Hi everyone, this is my first post so I hope I have put it in the correct area.
My wife and I own a company: ABC Software Ltd
We are both directors and employees of ABC Software Ltd
I am a software contractor and my wife does bookkeeping and testing for one of our own custom software products...