£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.
- Undeclared rental income 2,519 23
- Company buy back of shares from directors 59 2
- Cash basis 54 1
- Desperate IFAs and Auto-enrolment Scare stories 489 23
- Partnership registered in error. No activities with view to profit. 316 9
- Cash basis 719 25
- Rental income 92 2
- NIC thresholds - two employments 1,938 30
- s455 Directors loan 151 3
- Insurance for Company Ltd. by Guarantee 61 1
- Incorrect penalty warning letters sent 1,173 8
- Non resident capital gains 76 1
- Income recognition - release of product from a factory 411 12
- Does anyone use PS Financials accounting software out there? 338 1
- CIMA accountant wants to start consultancy 529 6
- What are the options for writing off a Directors Credit balance 175 2
- payroll software 506 9
- Fee base v staff ratio 591 7
- 1 investor and 1 director 50% shareholding each advice please 300 13
- Posting pension salary sacrifice journal 108 1
- Skandia using wrong address 600
- FHL, period of grace and Entrepreneur's relief 324
- Employee rewards 301
- Gift of reversion and lease into trust by two different people - later PPR 269
- EPS Analysis - Change to EURO 236
- Etax Australian 198
- LLP in Construction Industry 159
- Selling On Amazon & Calculatign Prices/Vat 147
- Interest and late payment charges HMRC 137
- Re-submitting CT600 on paper 129