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  • FIRST POST
    • Justaman57
    • By Justaman57 14th Jun 19, 12:27 AM
    • 2Posts
    • 0Thanks
    Justaman57
    Advice for working whilst Bankrupt
    • #1
    • 14th Jun 19, 12:27 AM
    Advice for working whilst Bankrupt 14th Jun 19 at 12:27 AM
    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?
Page 1
    • TripleH
    • By TripleH 14th Jun 19, 6:39 AM
    • 294 Posts
    • 194 Thanks
    TripleH
    • #2
    • 14th Jun 19, 6:39 AM
    • #2
    • 14th Jun 19, 6:39 AM
    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.
    Last edited by TripleH; 14-06-2019 at 6:40 AM. Reason: I forgot my manners
    Wherever you go, whatever you do Richard Marx is right there waiting for you.

    Sweet dreams!
    • Justaman57
    • By Justaman57 14th Jun 19, 10:41 PM
    • 2 Posts
    • 0 Thanks
    Justaman57
    • #3
    • 14th Jun 19, 10:41 PM
    Thanks
    • #3
    • 14th Jun 19, 10:41 PM
    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.

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