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rob s
14th January 2013, 11:44
Just joined after lurking for a while. Been contracting since '07 and although I've just been renewed for a final 3 months until start of may, I've basically said I don't want to work away 5 days a week any more (been 18 months on current contract and newly married!) so it's either 2 days WFH or I'm off (but more diplomatically than that obv.) especially as they've frozen rates.

I've also been umbrella all this time and about to join forces with t'other half who is also a contractor and have a 2 person ltd company which I hope should be more resilient to what I understand about IR35 etc but I'm deep in research....any pointers on doing this would be appreciated!

northernladuk
14th January 2013, 14:11
I've also been umbrella all this time and about to join forces with t'other half who is also a contractor and have a 2 person ltd company which I hope should be more resilient to what I understand about IR35 etc but I'm deep in research....any pointers on doing this would be appreciated!

Incorrect I am afraid. IR35 is on a contract by contract basis. Your partner could be in a nice IR35 outside contract but you can still get investigated if your contract isn't. I also think seems HMRC have such a focus on us because IR35 etc they will easily be able to unpick a two person contracting company over a proper company I am afraid.

You would make savings on only having one accountant and such like and the pro's might be able to point out some other minor benefits but IMO I would steer clear of a combined business and run your own affairs. I don't believe involving friends/family in business is ever a good thing. Might be ok now but when it goes wrong it will go wrong in a spectacular fashion and we have seen this on here.

I would look in to this situation in great detail and take some professional advice.

Wanderer
14th January 2013, 14:25
I've also been umbrella all this time and about to join forces with t'other half who is also a contractor and have a 2 person ltd company which I hope should be more resilient to what I understand about IR35 etc but I'm deep in research....any pointers on doing this would be appreciated!

Welcome! :wave:

NLUK makes a lot of sense, though in some situations I'd consider working through a single company. A few things:

You would save on account's fees and admin
IR35 pretty neutral really as NLUK says though you and your partner could substitute for each other if you are in the same line of business which is good IR35 karma.
It would be harder for HMRC to challenge salary/income splitting with a single company you both generated income.
Watch you don't hit the limit for the VAT FRS with a single company

Also, are you talking about a partner you are legally married or in a civil partnership with? For an unmarried couple, I'd generally recommend that you have your own separate companies unless you are pretty adamant that you are inextricably financially linked (eg, own a substantial house together and have children).

Separate companies might be safer if one of your businesses gets into trouble - you can close the bad company down and start a new one.

One company could get messy if one of the directors does a runner... :(

rob s
14th January 2013, 15:22
Thanks both - good stuff to bear in mind.

Zippy
14th January 2013, 15:55
One company could get messy if one of the directors does a runner... :(

This bit especially.

Keep business away from family and friends.

bestnetpayfriend
18th January 2013, 15:19
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