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£2,000 Employer NI Allowance & Company Control

£2,000 Employer NI Allowance & Company Control

Hi,

I am trying to figure out if a director has control of 2 different companies which means he could not claim the £2000 employer allowance for both companies:

The director has a 50% shareholding in company A (Other 50% owned by non related Director).

The director also has a 50% shareholding in company B (Wife owns other 50% in company).

Company B has made large loans to company A.

I am thinking the director would be classed as having control of company B (Since he owns 50% and his wife owns the other 50%).

I am also thinking he would have control of company A since he has a 50% shareholding in A plus company B has made loans to company A.

Do you think the director would be classed as having control of both company A and company B (So that I know he cannot claim employer NI allowance in both)?

If anybody could help it would be greatly appreciated

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26th Apr 2014 17:42

Connected?

The other shareholder is "unrelated" so you would not be attributing their rights to your Director's. Based on shareholding the Director does not have control of A.

Shareholding is not the only test so you need to look carefully to see if your director has control by virtue of s450 CTA 2010.

The fact that B has made loans to A does not, I think, affect the above.

Substantial commercial interdependence (SCI) is only relevant (and can only help) if two companies are connected with each other due to the attribution of rights between associated persons. You don't appear to have this issue, based on the other shareholder of A being "unrelated", so I don't think SCI is an issue.

 

 

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