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PAH111S
27th November 2003, 13:28
I currently have a ltd company that I'm joint share holder with 2 other people. The company isn't generating as much profit as we'd like so we are doing other things outside the company to boost income.

It looks like I may be going back contracting for a while and wonder if there's a way to do the invoicing through the company without sharing the profits (divies etc) with the other share holders. This would also have the benefit of the company having multiple revenue streams so IR35 wouldn't be as much of an issue as it would be if I set up another company for myself.

Bottom line is if I get a contract I want to keep the proceeds for myself but wonder if there's a way of doing this through a company I don't wholly own.

Any thought or ideas?

Bradley
27th November 2003, 14:57
You could draft an agreement between you and the other shareholders that means that you get the "profits" from contracting.

This may become difficult if either of the other shareholders is picky about what income you can take as "profit". There's also the problem that you may lose the contracting income if the existing company gets into trading difficulties anyway. A creditor isn't going to distinguish between whats yours and whats not.

The best thing to do would be to form another company - form an orderly queue please accountant guys! - as this keeps things simple from the start.

There's not an associated companies problem and a halving of the small cos rate for CT purposes if you don't own more than 50% of the existing company.

www 1staccountancy biz
27th November 2003, 16:35
The best thing to do would be to form another company - form an orderly queue please accountant guys! - as this keeps things simple from the start.

Agree with Bradley, a new company would keep things simple and avoid any unnecessary complications later on. :D

WWW ITDoctors co uk
27th November 2003, 18:00
I don't believe it - you 2 guys agreeing on something:)

PAH111S
28th November 2003, 16:08
Alternatively, a buyout of the other shareholders might be on the cards :)

Just need to get a bleedin contract now. I'm assuming Jobserve is still the daddy (most other sites seem to have the same vacancies).