If Mrs Mustang were to contract through MyCo, what would be the best way to pay/give funds to her? Has anyone else been in this situation?
As I see it there are 3 alternatives:
1) Set up a contract of employment with Mrs M and therefore pay her a salary. Downside: extra tax and NI
2) Issue shares to Mrs M and pay her divi's. Downside: I would have to receive divis at the same time in proportion to our share holding. I could of course leave these in MyCo.
3) Make her a director and pay her a salary as and when (i.e. no contract required). Downside: she has a say in the running of MyCo.
Anyone else thought of something else or got an opinion on the above?!
As I see it there are 3 alternatives:
1) Set up a contract of employment with Mrs M and therefore pay her a salary. Downside: extra tax and NI
2) Issue shares to Mrs M and pay her divi's. Downside: I would have to receive divis at the same time in proportion to our share holding. I could of course leave these in MyCo.
3) Make her a director and pay her a salary as and when (i.e. no contract required). Downside: she has a say in the running of MyCo.
Anyone else thought of something else or got an opinion on the above?!
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