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Tax implications on Secretary

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    Tax implications on Secretary

    Hi,

    Just about to start a new Ltd company and need a secretary, being single I was going to ask my mother or father. They are coming up to retirement, infact my farther already is so I wanted to check if there was any possible tax hits on them and also make sure there would be no consequences for either of their pension payments. I will also check this with the accountant but thought the more advice the better.

    Any advice would be appreciated .

    Thanks

    Steve
    When a man says his word is as good as his bond take his bond.

    #2
    Originally posted by swebb
    Hi,

    Just about to start a new Ltd company and need a secretary, being single I was going to ask my mother or father. They are coming up to retirement, infact my farther already is so I wanted to check if there was any possible tax hits on them and also make sure there would be no consequences for either of their pension payments. I will also check this with the accountant but thought the more advice the better.

    Any advice would be appreciated .

    Thanks

    Steve
    The only implication for a Company Secretary is if you pay him/her a salary for being in that role. If you do, it has to be delcared.

    If your parents are retired and not using their full annual tax allowance, you could pay a salary that won't push them over into tax - remember that if this does hapen your company will have to pay Emplyers NI contributions to Gordo.

    Comment


      #3
      Only if you pay them I think. Don't believe the secretary has any financial liabilities for tax or other debts but in theory may have legal liabilities:-

      http://www.companieshouse.gov.uk/abo...a1.shtml#three
      bloggoth

      If everything isn't black and white, I say, 'Why the hell not?'
      John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

      Comment


        #4
        Originally posted by xoggoth
        Only if you pay them I think. Don't believe the secretary has any financial liabilities for tax or other debts but in theory may have legal liabilities:-

        http://www.companieshouse.gov.uk/abo...a1.shtml#three
        Spot on.

        Comment


          #5
          Cheers for the information guys sounds like it won't be a problem then
          When a man says his word is as good as his bond take his bond.

          Comment


            #6
            When does the rule about company secretaries change so that companies with only one director don't need a secretary anymore? I'm sure I didn't dream that one.
            "If it floats, flies, or f***s, lease it." - Evel Knievel when he wasn't jumping buses or women

            Comment


              #7
              Originally posted by Captain Dispensable
              When does the rule about company secretaries change so that companies with only one director don't need a secretary anymore? I'm sure I didn't dream that one.

              Pretty sure its already in place...
              Property advisor for the people

              Comment


                #8
                I think I read the rule was in place but didn't come into effect until next year !
                When a man says his word is as good as his bond take his bond.

                Comment


                  #9
                  Your accountant may act as secretary ( for a fee ! ), it means a lot of the paperwork will also go direct to them. I would keep the oldies out of it, my Dad still has a go each year as he has to fill in a self assesment after I got him involved in an earlier Ltd I had.

                  Comment


                    #10
                    Originally posted by rootsnall
                    Your accountant may act as secretary ( for a fee ! ), it means a lot of the paperwork will also go direct to them. I would keep the oldies out of it, my Dad still has a go each year as he has to fill in a self assesment after I got him involved in an earlier Ltd I had.
                    Self assesment ! Why were you paying him or have I missed something. I thought if you weren't paying for the role it was basically just a signatory role and the tax man didn't need to get involved at all as far as they were concerned
                    When a man says his word is as good as his bond take his bond.

                    Comment

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