Does it make a difference what your paying some for ltd company?

Okydoky25

Sorry confused now?

Why can't a company pay anyone to do anything? Nurserys are company's and they pay their staff who look after other peoples kids?

All jobs/positions need doing for him to run the company? Why Would it make any difference if his mum was paid what I am for doing essentially what I do for him now?

Tax/NI will get paid where needed so it's not like we are trying to dodge that?

Savvy_Sue

By the same token, you might argue that your husband's company could pay a gardener, rather than doing it himself, because the garden needs doing.

However, your DH has set up a company for a purpose other than providing childcare, and other than providing gardening services. He can pay people to help with the running of his company and make them employees of the company, but the work they do must be for the company, not for him as a director / employee of the company.

It's the 'wholly and necessarily' test. A slightly different example: your DH might decide that he occasionally needs a whizzy camera for the business. If he buys said whizzy camera and claims the whole cost from the business, then it belongs to the business. If he also wants to use it on the family holiday, he should work out how much rightly 'belongs' to the business, and how much it is a personal purchase.

But this is the kind of thing the company accountant should be explaining.

Atidi

Okydoky25 wrote: »

Sorry confused now?

Why can't a company pay anyone to do anything? Nurserys are company's and they pay their staff who look after other peoples kids?

All jobs/positions need doing for him to run the company? Why Would it make any difference if his mum was paid what I am for doing essentially what I do for him now?

Tax/NI will get paid where needed so it's not like we are trying to dodge that?

The company could employ your mum if the business provides childcare services. Does it?

If it does, then you will have to pay the company for such provision of childcare in looking after your kids.

Don't you think the taxman would look suspiciously at any company that provides services at such preferential rates to their employees & shareholders (especially so if that is all they supply that part of their business to) at such a low cost that it is below cost price?

Okydoky25

I guess he needs to sit down with the accountant. I just can't understand why it would make any dif to who he pays?

I get a salary £9k for doing roughly 16 hours. Sometime less sometimes more each week. (Eldest child goes to nursery for 8 hours) youngest stays at home with me so I work from home around the kids.

I can't get my head around why it would make any dif if I'm paid to do this or my MIL?

If I go to work I can earn £20-25k full time and so without paying out for private nursery fees this would be financially viable.

Nursery fees will be £17k for both children (under 3) full time for 48 weeks a year! A little less with childcare vouchers. So not worth it IMO

imoneyop

Okydoky25 wrote: »

I get a salary £9k for doing roughly 16 hours. Sometime less sometimes more each week. (Eldest child goes to nursery for 8 hours) youngest stays at home with me so I work from home around the kids.

I can't get my head around why it would make any dif if I'm paid to do this or my MIL?

The difference is what you are being paid to do as opposed to what your MIL would be paid to do. I would assume that officially you are paid to do the company's admin and you are therefore working for the company. Your MIL would be being paid to look after your children - which is of no benefit to the company and therefore not something the company should be paying for.

whitewing

Are you actually saying that you want your MIL to do the business admin that you currently do, as she would be able to do this while having your children in the house too?

Or would MIL's role purely be being available for the children?

Okydoky25

Sorry prob should have explained that she would also be taking over the admin. With me working full time I would not have time to do it and not worth him employing someone externally if his mum is more than capable?

imoneyop

Okydoky25 wrote: »

Sorry prob should have explained that she would also be taking over the admin. With me working full time I would not have time to do it and not worth him employing someone externally if his mum is more than capable?

That is totally different to what you asked in your OP.

There is nothing to stop the company employing your MIL (or any one else) to do the admin that you were doing previously.

The fact that your kids happen to be in the house when she is doing it is irrelevant, as long as she is doing the work she is paid for.

Savvy_Sue

He definitely does need to sit down with the accountant. And yes, he can employ someone other than you to do the company admin. What he still can't do, IMO, is employ anyone to look after the children as an employee of the company.