Hi all
Long time lurker, first time poster.
Looking some for advice/if anyone has been in a similar position.
My wife started contracting through my company last year, initially 1 day per month but increasing to 3 days a week from Feb. She’s a director, also a shareholder and this is her only source of income. (This was done as was only supposed to temporary so didn’t want to go through setting up and running a second company for 1 day a month…)
As a result we’ll end up with a lot of surplus in the business this year and all subsequent years.
At some point in time I might stop contracting and go perm, and as a result have a choice of leaving the money in the business to be drawn down at a later date or take out immediately through MVL.
1) If I applied for MVL would my wife (as a director of a soon-to-be insolvent company) be ineligible to start up her own company for 3 years?
2) Would it make more sense for my wife to set up her own company now and run her contracting through that (instead of mine) so that if I need to close down my company down I could do so without impacting her? Would I need to remove her from directorship and/or shareholding?
FYI – accountants have been asked, but thought I’d check with the hive mind too.
TLDR: should wife get own company for contracting? If I MVL MyCo will wife as MyCo Director be impacted by 3 year rule and can't start up NewCo?
Thanks in advance
PBaJ
Long time lurker, first time poster.
Looking some for advice/if anyone has been in a similar position.
My wife started contracting through my company last year, initially 1 day per month but increasing to 3 days a week from Feb. She’s a director, also a shareholder and this is her only source of income. (This was done as was only supposed to temporary so didn’t want to go through setting up and running a second company for 1 day a month…)
As a result we’ll end up with a lot of surplus in the business this year and all subsequent years.
At some point in time I might stop contracting and go perm, and as a result have a choice of leaving the money in the business to be drawn down at a later date or take out immediately through MVL.
1) If I applied for MVL would my wife (as a director of a soon-to-be insolvent company) be ineligible to start up her own company for 3 years?
2) Would it make more sense for my wife to set up her own company now and run her contracting through that (instead of mine) so that if I need to close down my company down I could do so without impacting her? Would I need to remove her from directorship and/or shareholding?
FYI – accountants have been asked, but thought I’d check with the hive mind too.
TLDR: should wife get own company for contracting? If I MVL MyCo will wife as MyCo Director be impacted by 3 year rule and can't start up NewCo?
Thanks in advance
PBaJ
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