Mixing services a limited company provides

[MrRobin]

Hi

I've been contracting thru my ltd for 4 years or so (IT related work) and my wife is soon starting as a locum doctor and we're wondering if she can provide her services thru my ltd.

Is this possible? Are there any issues with the mixing of services my ltd provides?

Ta.
R

[Tanya@SC Lee Accountant Ltd]

Assuming you are on flat rate, it could be some issue as she's not supposed to charge VAT.

Hi

I've been contracting thru my ltd for 4 years or so (IT related work) and my wife is soon starting as a locum doctor and we're wondering if she can provide her services thru my ltd.

Is this possible? Are there any issues with the mixing of services my ltd provides?

Ta.
R

[MrRobin]

Assuming you are on flat rate, it could be some issue as she's not supposed to charge VAT.

Interesting. I wasn't aware of that, thanks. It's also probable that her income + mine would go over the FRS upper limit too... Could her invoices be treated as vat disbursements though?

[Tanya@SC Lee Accountant Ltd]

It could be better for her to set up her own

Interesting. I wasn't aware of that, thanks. It's also probable that her income + mine would go over the FRS upper limit too... Could her invoices be treated as vat disbursements though?

[Taxless]

Start by looking at the company Articles of Association. If they were compiled prior to 1 October 2009 they well restrict what activities the company can undertake. If they do, they can be changed.

Medical practitioners generally can now incorporate but you need to check how this income can be introduced into the existing company.

Has the medical practice or practices that she will work for been approached to check that they are happy to pay money that she earns into the existing company?

They will be contracting with a company that is not solely a medical based company. Do they have a come back on her for anything that goes wrong and does that transfer to the company?

There is also the Employment Related Securities legislation to consider but for family members, obtaining shares should not be an issue.

Have you thought about how you will share going forward and what to do in the event of a dispute or even a separation or divorce?

[Tanya@SC Lee Accountant Ltd]

Locum doctor could be self employed or set up their own company (if they go through agancy)

Start by looking at the company Articles of Association. If they were compiled prior to 1 October 2009 they well restrict what activities the company can undertake. If they do, they can be changed.

Medical practitioners generally can now incorporate but you need to check how this income can be introduced into the existing company.

Has the medical practice or practices that she will work for been approached to check that they are happy to pay money that she earns into the existing company?

They will be contracting with a company that is not solely a medical based company. Do they have a come back on her for anything that goes wrong and does that transfer to the company?

There is also the Employment Related Securities legislation to consider but for family members, obtaining shares should not be an issue.

Have you thought about how you will share going forward and what to do in the event of a dispute or even a separation or divorce?

[MrRobin]

Thanks for all your replies. The more I look into it the more complex it gets... There seem to be quite a few differences between IT and medical contracting (accountancy wise!) so we will have to do some more reading up to make an informed decision.

[JamJarST]

Thanks for all your replies. The more I look into it the more complex it gets... There seem to be quite a few differences between IT and medical contracting (accountancy wise!) so we will have to do some more reading up to make an informed decision.

Do you have an accountant? This is the kind of thing I would be asking him/her.