Hiding a transaction with a Ltd company
A client has been offered to do some work for a Ltd company, but he does not want his employer to know about it as it is likely to cause a bit of office politics among his colleagues. He does not wish to avoid tax in any way, he just does not want his employer to know that he may be working for another company to make day to day life more bearable.
The Ltd company has offered him a lump sum for the work he has proposed to do, and he has asked me to advise how he should accept this money. He wants to minimise his tax liability therefore a salary has been ruled out as he is a higher rate tax payer
His wife has a dormant Ltd company, and I was wondering if she set this up again, and accepted dividend in to this company would this help disguise the transaction?
I cant really see any way of structuring the transaction so it does not look dodgy, and I think it will be impossible to hide the transaction. With a bit of digging I think his employer will easily find out whatever he does.
As I have already said, he wishes to pay all tax due, its just an office politics issue. Not sure how the tax man would look upon it mind you!
Thanks in advance