Advice for working whilst Bankrupt

Justaman57

Hi all,

My first post,

Can my girlfriend start a company and be the sole director, while I work for the company on minimum wage to avoid an IPA?

Any profits the company has, my girlfriend would profit from them.

Is this illegal or just morally wrong?

TripleH

Welcome to the forum.

Yes. You are employed by the company as an employee, the same as anyone else so there is no problem there.

The issue lies with your girlfriend. Does she know her responsibilities as a director? Do you know how taking money out of a company works? Just because you earn it does not make it your money. If you split up she will get the co pay a d you will be left with nothing.

It is a perfectly workable idea but you both need to do some research before jumping into this as it is potentially fraught with danger for the unaware.

Justaman57

Hi Triple H, thanks for the welcome,

We would speak with an accountant to sort that side of things out.

I have some idea about how a company works,
Corp Tax on all profits (-expenses salary, mileage, accountant fees etc).
Non-vat registered as the company would be below the 85k threshold.
7% tax on dividends minus £2000 tax-free allowance.

My girlfriend is employed elsewhere so we were hoping she could take no salary from the ltd company to avoid incurring extra income/nic tax and simply take dividends if it arises.

Hopefully, that's possible, an accountant would be able to advise us further, so thanks to your knowledge we'll go see one.

:money: