I have a client who currently work part time with NHS and also work part time with a recruitment agency to carry out her duty as a nurse in different hospitals. She can choose which hospital to go, if she want to work or not, and can choose what depatment of the hospital of her choice she is willing to accept work.
The agency have required that she register a company, payment her made directly to the company in the companiy's name.
Can this person pay themselves in Dividend and no salary at all - Maximum income from the agency work is 12k?
Would her her total income be affected for tax purpose due to her part time employment with NHS?
What are the possible allowable expenses for this kind of area asides from Transportation, Parking tickets, uniform expenses?
Can proportion of house rent be allowed as the company is registered in her residential address?
Thanks for the heads up in advance.
Replies (7)
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You have a client...
Are you an accountant in disguise?
The questions you ask are very basic and what I would expect any qualified and experienced accountant to know.
Knowledge
I'm all for sharing knowledge and do my fair share of helping people who are obviously struggling with a technical issue. Be that either by imparting technical knowledge or giving my professional opinion.
However when someone drops a question on the forum on behalf of one of their "clients" that you would expect any competent accountant to understand it can only be viewed with scepticism.
Yes..
she can infact pay whole of £12k as dividend without attracting any tax liability but this will not be an allowable deduction in CT computation, therefore you need to do the maths to work that out..
or
she can pay herself a salary up to the PT £7,956 without attracting any NI or Tax yet being allowable deduction in CT and rest as dividends. This will also qualify her to state benefits etc
I have the same
I have recently taken on a client who is exactly as you describe.
She also asked about putting her house costs through the company. As the business is not run from her home and there is no exclusive room dedicated to the business she can not put any house cost through the business. Please see these links for more help.
http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47800.htm
http://www.hmrc.gov.uk/manuals/eimanual/EIM32760.htm Her total income for tax would be affected depending on how much she earns in her PT job and how much she pays herself as a dividend. You would need to do a self assessment tax return and calculate the effect.
Hope this helps.