Limited company for our hobby shops
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My partner and I each have online hobby shops with the revenue now likely to exceed our £1k trading allowances this tax year. We are also PAYE employed where I earn enough that I need to make extra pension contributions to avoid higher rate tax and child benefit payback and my partner is roughly in the middle of basic rate tax. We were thinking of forming a limited company to cover both shops (different type of inventory, different sales platforms but shared mail order postage & packaging operation) and from what I read it's important to form it correctly at the start as there can be implications to changing it later.
Ideally I would like to be a joint controlling director with no ownership or income from the company. However I would be doing work for the company so I believe HMRC would expect me to be paid (even if a director?) even if I don't want to be.
Am I right in thinking it would be unacceptable to form the company with my partner as sole shareholder and joint director? That way she would be able to take all the profits as either director pension contributions (would it be acceptable for only one director to get this? and are there any limits to the percentage of profit that can be allocated?) and/or dividends after corp tax within her annual allowance. Any extra profit would be built up as additional inventory in the company.
Thanks you in advance.