£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:
Director X has a 50% shareholding with his wife who is also director holding the other 50%. At the start of the tax year Director X had made a slightly larger loan to the company than his wife director. Only £50 more but even so still larger. As Director X owns 50% and has given a larger loan I think this would mean he has control of the company.
Director X has a 50% shareholding with director Z who also holds 50%. This is not a relative. At the start of the tax year Director X had made a slightly larger loan to the company than the other director. Only very small again but still larger than the other director. As Director X owns 50% and has given a larger loan I think this would mean he has control of the company.
1. Do people agree with me that Director X would be classed as having control of both the above companies as he has a 50% share and has made a bigger loan to the company (Albeit a tiny amount more). And therefore because of this he can only claim Employment Allowance in one of the companies?
2. For next tax year in Company A. If the director makes sure his loan is the same size as his wife's, and therefore did not control the company, I assume he could claim employer allowance in both companies? I do not think I need to add his and his wife's shareholding together to give him control as the other director in company B is not a relative.
Thank you for any advice anyone may provide. It would be really appreciated.
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