Company secretary do i need to declare it

bluehammer

My Husband has started a limited co and has put me down as company secretary - our accountant said we can claim expenses for the company secretary of up to £100.00 per week - i do not work and have not worked for 20 plus years will I have to tell the tax man and start filling in forms ?
I get a NI credit via my disability benefit so i don't want problems in the future
Thanks

misscomickat

I'm a bit confused. Are you working as the company secretary or is he just trying to fiddle the books? Sounds rather dodgy.

Little_Mama

Are you going to be paid a salary?

I actively work as the co sec for our limited company, doing the admin etc and our accountant gave us all the necessary paperwork. From memory it may have been a P46 but I could be making this up, it was a few years ago.

Best to have a chat with your Accountant. Also, if you will be receiving dividends in that role then there are proposals in place for a rule change so make sure you are ok and this has been considered.

Good luck with the company.

LM

bluehammer

Hi
I shall be answearing the phone as I am already at home with the children and using the computer to type invoices etc - but my husband was told by the accountant that being a ltd co my husband can pay a co sec ( ME ) upto 90.00 pounds without having ( me ) pay tax or inurance I know i should have listened more closely but the accountant gabbled on like you were expected to know these things - i shall have to ring him and check - but he is a bit aloof i am a bit shy really.
thanks for help

Cook_County

The company will need a PAYE scheme set up, it will then give you payslips and a P60. This will of course involve more paperwork so your pay may have to increase just to pay for that extra work!

CLAPTON

Basically if you have no other taxable income, you can earn 5225 per annum before any tax is due. No NI would be payable on earning of less than 100 per week.
But the company would have to do the paperwork to make you an employee even if no tax was payable.
I dont know how this might affect your disability benefit

Cook_County

Do ask your accountant if the company has to pay you minimum wage as well...

ben.bayliss

As far as I understood it, a company could pay a worker £100/week to an employee before having to enrol in a PAYE scheme. Perhaps this is why the accountant mentioned that specific figure as you'd be able to be paid 'a wage' but wouldn't create masses of extra paperwork.

Debt_Free_Chick

bluehammer wrote: »

My Husband has started a limited co and has put me down as company secretary - our accountant said we can claim expenses for the company secretary of up to £100.00 per week

Who is "we" - is this the Company?

Who does the accountant advise - the Company?

I think the accountant is saying that the Company can pay someone to do the job of Co Secretary and that £100 pw would not look "odd" as a Co expense.

Separately - the person who is fulfilling the role of Co Sec may need to account for this income. Let's assume that the Co Sec receives what the accountant suggests i.e. £100 pw.

The Co Sec will need to declare that amount as "income" on their tax return. Whether or not they pay any tax or NI depends on their total income for the (tax) year.

Cook County has a point. If the company is "employing" a Secretary and the Secretary is regularly employed by the Company, then it's likely that the weekly wage paid by the Company to the Secretary should have income tax/NI deducted under PAYE.

You need to separate out your role "on behalf of the company" i.e. as the Co Sec, an officer of the Company; and your role as "as an employee".

i do not work and have not worked for 20 plus years will I have to tell the tax man and start filling in forms ?
I get a NI credit via my disability benefit so i don't want problems in the future
Thanks

That you have not worked in the past is irrelevant. You need to declare your total income for each and every year. You might not need to do this if the Company deducts tax via PAYE. If they don't, then you may need to register as self-employed.

It sounds to me as though your accountant has advised the Company - but is not appointed to advise the individual officers/ employees, such as yourself.

Either swot up on the tax law or get yourself an accountant.

HTH

swanny65

bluehammer wrote: »

My Husband has started a limited co and has put me down as company secretary - our accountant said we can claim expenses for the company secretary of up to £100.00 per week - i do not work and have not worked for 20 plus years will I have to tell the tax man and start filling in forms ?
I get a NI credit via my disability benefit so i don't want problems in the future
Thanks

I take it you are on claiming Incapacity Benefit but not being paid any benefit.

You should tell the DWP because, even if you are getting Incapacity Benefit credits only, you would may be classed as capable of work and may not entitled to your credits any longer.

bluehammer

Thanks for all the replys I have decided to not get involved as Co Secretary-

I do not want the hassle of compremiseing my Severe Disablement Benefit which I need, I am registed 80% disabled so do not need unnesccessary problems !

The Accountant will need to sort something out after all that his what he will be paid for, I do not want any stress, with the Tax, etc

thanks again.