Discussion
I've recently changed jobs and have a usual mon-fir day job. My old company has contacted me to ask if I'd be willing to do some contract work out of hours. My new company's contract says this is not permissible (without written permission). Parking that issue for a moment, is there a way I can do this extra work without it impacting my tax code at some stage and hence tipping off my employer.
I'm married if that helps (in terms of seting up some sort of company and the proceeds going to my partner).
Could be a lucrative second income so any suggestions greatly received!
I'm married if that helps (in terms of seting up some sort of company and the proceeds going to my partner).
Could be a lucrative second income so any suggestions greatly received!
What about the ethical and legal issues arising?
If you are running a sideline business and pretending that the income generated by that business is your wife's rather than yours, that would be construed as fraud - especially if the income tax and National Insurance was atributed to your wife rather than you.
If you are running a sideline business and pretending that the income generated by that business is your wife's rather than yours, that would be construed as fraud - especially if the income tax and National Insurance was atributed to your wife rather than you.
I've done this before on a number of occasions although my main employer at the time did not put such limitations in the contract.
Just get it done properly and make sure you have the blessing of your employer. Providing there are no conflicts of interest and they have some sort of assurance that your performance is not going to suffer then they may well be fine with it.
Otherwise I wouldn't take the risk as they are providing you with the means to pay off your mortgage etc.
Just get it done properly and make sure you have the blessing of your employer. Providing there are no conflicts of interest and they have some sort of assurance that your performance is not going to suffer then they may well be fine with it.
Otherwise I wouldn't take the risk as they are providing you with the means to pay off your mortgage etc.
I think the key is whether there is a conlict of interest or not. If, your in IT or example, I'm sure they wouldn't have a problem with you taking up a bar job etc. But they might have problem if you take up contract work with a competitor carrying out tasks you could or should be doing in your employed role or utilising their premises, equipment or contacts etc......
princeperch said:
what would the problem be with you and your wife both being directors, and only one of you choosing to draw from the company a divi?
No problem in that (read the Arctic Systems Case). However, at some point the OP wiould want his share of the income out of the company at which point HMRC would want their bite.HMRC would be very wary of a set up where the busienss and revenue was essentially 100% generated by one individual and all the personal income extracted from the company went to some other individual who had minimal or no involvement in the business.
That was the crux of the Arctic Systems case - although in that particular case the income was being split 50:50 between the proprietor and his wife. HMRC lost that case (eventually) but having a business where the "other" person took 100% of the income might be considered pushing your luck a bit.
Eric Mc said:
princeperch said:
what would the problem be with you and your wife both being directors, and only one of you choosing to draw from the company a divi?
No problem in that (read the Arctic Systems Case). However, at some point the OP wiould want his share of the income out of the company at which point HMRC would want their bite.HMRC would be very wary of a set up where the busienss and revenue was essentially 100% generated by one individual and all the personal income extracted from the company went to some other individual who had minimal or no involvement in the business.
That was the crux of the Arctic Systems case - although in that particular case the income was being split 50:50 between the proprietor and his wife. HMRC lost that case (eventually) but having a business where the "other" person took 100% of the income might be considered pushing your luck a bit.
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