Ltd. company & minimum wage

emv

Hi

If I employ myself & my husband through our limited company, do we have to pay ourselve the minimum wage? What do I do about declaring the hours I work for tax credit purposes?

Any advice gratefull received!

Emmavix

ukbill69

You can work any amount of hours. You can both ern £5200 per year without paying tax or ni.

johnllew

http://www.macintyrehudson.co.uk/content/forums_bus_startup/min_wage.html

What about company directors?

In common law, company directors are classed as office holders and can do work and be paid for it in that capacity. This is true no matter what sort of work they do and how it is rewarded.
The NMW does not apply to office holders, unless they also have contracts which make them workers.
It is unlikely that a company director will have an implied contract which makes him a worker. The rights and duties of an office are defined by that office, and it exists independently of the person who fills it. Directors can be removed from their office by a simple majority of the votes cast at a general meeting of the company. This contrasts with the rights and duties of an employee which are defined in a contract of employment.