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Business between spouse's limited companies

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    Business between spouse's limited companies

    Hi,

    Quick question - my partner is an IT contractor and I work in PR. There have been times when I have helped him promote his business - which if it were anybody else I would have charged for...

    I just wondered what HMRC's position would be if I were to submit an invoice to my partner (I can imagine his face!), or he to me should I ever need any IT help?

    The only information I can find online is about paying spouse's/partner's salaries out of one limited company... which isn't what I'm after.

    Thanks,

    #2
    Originally posted by santanethy View Post
    Hi,

    Quick question - my partner is an IT contractor and I work in PR. There have been times when I have helped him promote his business - which if it were anybody else I would have charged for...

    I just wondered what HMRC's position would be if I were to submit an invoice to my partner (I can imagine his face!), or he to me should I ever need any IT help?

    The only information I can find online is about paying spouse's/partner's salaries out of one limited company... which isn't what I'm after.

    Thanks,
    I don't imagine HMRC would give a stuff about a legitimate invoice for a business transaction between two limited companies, except if it were a fraudulent way of transferring monies between said companies for the avoidance of corporation tax at year end, for example. But you could always, ahem..."ask your accountant"...
    His heart is in the right place - shame we can't say the same about his brain...

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      #3
      Originally posted by santanethy View Post
      I just wondered what HMRC's position would be if I were to submit an invoice to my partner (I can imagine his face!), or he to me should I ever need any IT help?
      If you can show that you did the work then they won't care.
      Best Forum Advisor 2014
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      Click here to get 15% off your first year's IPSE membership

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        #4
        What amounts are you looking at here?
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #5
          Originally posted by northernladuk View Post
          What amounts are you looking at here?
          Why would that be relevant, beyond the points already made about being genuine invoices for work completed?
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            #6
            Originally posted by TheFaQQer View Post
            Why would that be relevant, beyond the points already made about being genuine invoices for work completed?
            Just interested to see what they are planning to do. Intrigued how much PR and one man band IT contractor needs and how much 500 quid a day IT help the PR person needs.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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              #7
              Originally posted by northernladuk View Post
              Intrigued how much PR and one man band IT contractor needs
              Sweet FA


              Originally posted by northernladuk View Post
              and how much 500 quid a day IT help the PR person needs.
              loads..... have you worked with these luvvies before?

              As others have stated, if it's honest work at a fair rate then no issue. Although HMRC view will be if it reduces the total tax burden for the 2 companies they'll dig very deep into the detail of what was provided.
              If it's tax neutral then I'd question why OP would bother with the paperwork.
              Also are both people directors of both companies? If they are then another question would be why bother charging when you're already an officer of the company.
              See You Next Tuesday

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                #8
                Originally posted by northernladuk View Post
                Just interested to see what they are planning to do. Intrigued how much PR and one man band IT contractor needs and how much 500 quid a day IT help the PR person needs.


                Need to be careful that 'PR' isn't applying for roles and updating LinkedIn profile.

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  Just interested to see what they are planning to do. Intrigued how much PR and one man band IT contractor needs and how much 500 quid a day IT help the PR person needs.
                  I'd be interested in knowing this too. Maybe I should have taken out that radio ad. Still hum the jingle to myself.

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