Going Self Employed??

[bizzyrizzy]

I have just recently started a ltd company. I have been self-employed now for a couple of years. I am also the director of the newly formed ltd company. But my question is I have appointed my girlfriend as the company secretary does she have to go self employed.
She won't be working full time hours only part time because she will be working elsewhere under paye. Hope that made sense

 

[Mike tells it like it is]

No.....................................

 

[bizzyrizzy]

She also has shares in the company. Does that mean she Needs to be self-employed. Sorry for double post

 

[elaine@cheapaccounting]

A limited company no longer needs a secretary.

She is not self employed - nor are you as a director!

 

[Mike tells it like it is]

No..........

 

[elaine@cheapaccounting]

Nope - still nto self employed with shares

She will of course get divs in line with her shareholding

 

[bizzyrizzy]

thx Mike thats was a quick response. Being a company director do i need by law to pay myself by paye and the company secretary by paye or can i just take dividend payments from the company??

 

[bizzyrizzy]

wow loving the responses i must say im a newbie here but liking this forum already.

If my gf is getting paid paye from the company and paye from her other job won't she be paying double tax. Where as i only pay 20% with me being self-employed. Won't she pay alot more. Thanks for the help ppl appreciate it!!

 

[bizzyrizzy]

ah right did'nt see your first post elaine. We are employers of the company you mean so we will HAVE TO set up paye for both of us. How would my gf tax work out with 2 paye jobs?

 

[elaine@cheapaccounting]

You are not self employed.

You are a director of a limited and you would pay a salary and dividends assuming you have no other income. The exact mix depends on your income.

Really a conversation with an accountant would set you up with all of this and decide on if having your GF as a shareholder is good from a tax point of view.

If you can't afford that - at least read my free guide on how to keep your accounts. See sig link for details.

 

[elaine@cheapaccounting]

Your GF won't have 2 PAYE jobs - don't pay her a salary in the limited company.

This structure should be set up BEFORE the company is formed but not too late to sort it - quick though!

 

[bizzyrizzy]

elaine thanks for your reply's. I will read your free guides. Also nice website bookmarked it Will come in handy soon

 

[elaine@cheapaccounting]

Will come in handy soon

probably sooner than you think

 

[chelle_85]

wrong thread