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Can he carry on being paid through his limited co

Client paid through his company, things to chance

We have a client who does consulting work for a company based in Scandanavia.

At the moment the money he receives goes through his limited company of which he takes the basic salary and dividends.

 

It is now proposed that this company wants to set up a UK arm of which he will be a director but not the majority shareholder. He will not be on PAYE at the new company and he will be paid for his work on it through the Denmark arm of the business. 

Are we okay with this?

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By mrme89
12th Oct 2017 16:35

Yes. I'm fine with it.

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12th Oct 2017 16:32

Well, I'm okay with this but then I'm not involved in any way. I think you need to ask somebody else. I can ask my brother for you as he'll be popping around later. Can't see that he'd have much problem either.

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to Tim Vane
12th Oct 2017 16:57

Tim Vane wrote:

Well, I'm okay with this but then I'm not involved in any way. I think you need to ask somebody else. I can ask my brother for you as he'll be popping around later. Can't see that he'd have much problem either.

I asked him, he's fine with it. Just going to check with my mother later and will revert.

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By Dib
12th Oct 2017 16:43

[Speechless]

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By 0098087
12th Oct 2017 16:56

So we all know everything do we. Thank you for your help

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to 0098087
12th Oct 2017 17:13

0098087 wrote:

So we all know everything do we. Thank you for your help


Help yourself a bit by showing you've put some thought into the matter.

If you've asked the question, you must have a reason for thinking there is a problem. Why do you think there is a problem?

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12th Oct 2017 16:56

Yep, agree with other posters. No problem my end.

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12th Oct 2017 17:05

I don't know. I think that's a bit advanced. Let's start with something simpler. You choose a number between 1 and 9, write it down, put your finger on it, think hard and I'll try and guess it.

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12th Oct 2017 17:06

5?

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By 0098087
12th Oct 2017 17:29

Because he is a director and the business is uk based and I did think it through before I asked and having encountered it before is why I asked. I speak to other accountants and most tell
Me to avoid any answers because of the people who post.

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to 0098087
12th Oct 2017 17:36

0098087 wrote:

Because he is a director and the business is uk based and I did think it through before I asked and having encountered it before is why I asked. I speak to other accountants and most tell
Me to avoid any answers because of the people who post.

Quite.
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to 0098087
12th Oct 2017 17:38

Oh don't be like that. You've been a 'member' for 18 years. You know what it's like.

The director is an office holder.

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to 0098087
13th Oct 2017 10:13

0098087 wrote:

Because he is a director and the business is uk based.

Which you think is a problem because? I mean I'm pretty sure I can guess, but I shouldn't have to do that. Why should anyone go to the effort of trying to work out what you mean to give you free help?

This is why you are getting mocked. There are almost certainly a lot of people who also can't be bothered with guessing games. They are just not responding at all.

But obviously the problem is everyone here being mean. After all, you have a right to get free detailed answers to vague queries don't you.

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12th Oct 2017 17:34

0098087 wrote:

He will not be on PAYE at the new company


why not?
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to WhichTyler
13th Oct 2017 09:12

WhichTyler wrote:

0098087 wrote:

He will not be on PAYE at the new company

why not?


0098087 wrote:

He doesn't want to be

Well that's alright then. Just explain that to HMRC if they ask

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By mrme89
12th Oct 2017 18:03

I’m not sure why people get shirty when they get these types of responses. Had you considered putting a bit of effort into your question before posting? If so, why didn’t you?

Companies cannot received salaries.

If he is contracted to work for the Denmark company and is paid a salary from the Denmark company, then it is his salary, not that of the company.

The salary can be paid to his company, however. But it will just be a credit to his directors loan account won’t it?

What problems can you foresee?

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By 0098087
to mrme89
12th Oct 2017 18:06

I was just checking there wouldn't be a problem. He doesn't want to be on the PAYE at the UK Company as he'll pay more tax

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By tom123
to 0098087
12th Oct 2017 18:15

I don't want to be on PAYE either, but, unfortunately, being employed I have to be.

I think your client is in a similar situation.

Why would you possibly think not?

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By Matrix
12th Oct 2017 18:18

As the adviser, you will need to advise what works and what doesn't. I generally would not recommend a Director billing for work through their own consultancy company. Add in the Danish element and it gets complicated.

Are you sure it works currently having discussed this with a Danish adviser? Is there already a UK PE in any case assuming your client is in the UK, although this was not made clear?

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By EASy
12th Oct 2017 20:50

Hi Simon (0098087),

I'm ok with it.

As an aside; I've just downloaded your company's 31 October 2016 accounts.

As you are an accountant, could you explain to me why these were prepared under the 2008 FRSSE (which ceased to exist for accounting periods commencing on or after 1 January 2015).

Thanks.

P.S. I'm still ok with it.

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By 0098087
to EASy
12th Oct 2017 21:19

Actually the new frs started for accounting periods after 1 January 2016

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By EASy
to 0098087
12th Oct 2017 21:23

Oh dear...

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By 0098087
to EASy
12th Oct 2017 21:53

Sorry frs 102

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By DJKL
to 0098087
12th Oct 2017 23:31

Was 1 January 2015 not the date re early adoption?

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By 0098087
to DJKL
13th Oct 2017 06:45

Yes but not compulsory

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By Matrix
to 0098087
13th Oct 2017 07:13

Maybe he is trying to point out that FRSSE effective January 2015 replaced FRSSE 2008 from 1 January 2015. So even if you did not choose to use FRS102 from Jan 2015 then the new FRSSE 2015 was still applicable.

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By 0098087
to Matrix
13th Oct 2017 07:46

Yes I get that but i didn't have to

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By EASy
to 0098087
13th Oct 2017 08:25

What Matrix said...

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By Tosie
to EASy
14th Oct 2017 18:14

"As an aside; I've just downloaded your company's 31 October 2016 accounts.

As you are an accountant, could you explain to me why these were prepared under the 2008 FRSSE (which ceased to exist for accounting periods commencing on or after 1 January 2015)."
Could it be because VT software has not updated its software. I am curious as to how you could know who OP is.

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By Tosie
to EASy
14th Oct 2017 18:14

"As an aside; I've just downloaded your company's 31 October 2016 accounts.

As you are an accountant, could you explain to me why these were prepared under the 2008 FRSSE (which ceased to exist for accounting periods commencing on or after 1 January 2015)."
Could it be because VT software has not updated its software. I am curious as to how you could know who OP is.

Thanks (0)
12th Oct 2017 23:44

I too have no problem with your client doing this.

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13th Oct 2017 09:19

Unlike the others I'm not ok with your client doing this.

I'm not really sure why, just not keen, if you want my opinion there it is.

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By 0098087
to Duggimon
13th Oct 2017 09:28

And that is why I asked the question

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13th Oct 2017 09:52

So we are now attacking accountants as well as freeloaders on the site?

Seems harsh.

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to JCresswellTax
13th Oct 2017 10:18

I don't think there was anything wrong with the answers given to the question asked. "Are we ok with it?" is hardly a specific question, if the poster has specific concerns about the proposed arrangement then they ought to ask about those.

People on here seem more than happy to answer questions, it's when the poster expects us to work out the question they meant to ask and guess at the information required to answer it that some degree of derision comes in.

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to Duggimon
13th Oct 2017 11:04

I agree the question was vague, no doubt.

But as we always harp on about this site being 'for accountants only' why can't we actually help the accountants and reply something like 'your question was a bit vague, perhaps you could respond further'?

I like a moan and gripe and [***] take as much as everyone, but surely we should be helping each other more rather that just being arseholes.

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to JCresswellTax
13th Oct 2017 11:25

You are right. It says more about us than the OP. I have had a PM from a member who, it would seem, has been upset my comments so I might make an effort to tone things down.

It's a bit like Lord of the Flies here sometimes. Maybe a consequence of the absent moderators.

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to JCresswellTax
13th Oct 2017 11:32

We can say arseholes!

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to JCresswellTax
13th Oct 2017 11:43

I disagree. What is clear from the OP is tha 007, or whatever their name is, KNOWS there is an issue, but has a client that wants to do it anyway. So, they've come on here looking for others to say, "Yes that's okay". People have been good enough to oblige.

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13th Oct 2017 11:11

And also.. to review their accounts at companies house and come back picking holes in them? What a load of pish!

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to JCresswellTax
13th Oct 2017 11:26

A bit creepy even.

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to JCresswellTax
13th Oct 2017 11:43

Yes, that's a worrying thought......one really should get out more?
I too, have watched from the sidelines on this one and, whilst the question might have been phrased/composed more eloquently, we can all be wise after the event.

I'm sure we've all made mistakes (just ask the present Mrs Mann on that one!) but, in reality, this has turned out to be one of the more cringe making threads.

And that, my friend, looks one hell of a cosy [***] (see the member's profile). Similar to one of my brood - idle!

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to Chris Mann
13th Oct 2017 11:43

Chris Mann wrote:

I'm sure we've all made mistakes (just ask the present Mrs Mann on that one!)

Present? Not a ringing endorsement of her future status!

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to andy.partridge
13th Oct 2017 11:53

It's a Woganism - to state the blooming obvious!

In a sincere attempt to raise the spirit on the thread. My goodness, it needs it!

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to Chris Mann
13th Oct 2017 12:04

Chris, you might be surprised that what is a blooming obvious Woganism to you, might not be to others. There are kids on here who won't even know who Wogan was let alone have an encyclopaedic knowledge of his foibles.

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to Chris Mann
13th Oct 2017 11:57

And that, my friend, looks one hell of a cosy [***] (see the member's profile). Similar to one of my brood - idle!

Jeeps, even "cat" cops for the edit. Pity Aweb can't take as much time to take members comments just as seriously. Lighten up, take a chill pill.Remember, we're only here for the weekend.

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By mrme89
13th Oct 2017 11:33

If you're happy and you know it
Clap your hands. Clap, Clap.
If you're happy and you know it
Clap your hands. Clap, Clap.
If you're happy and you know it
and you really want to show it
If you're happy and you know it
Clap your hands. Clap, Clap.

If you're angry and you know it
Stomp your feet. Stomp, Stomp.
If you're angry and you know it
Stomp your feet. Stomp, Stomp.
If you're angry and you know it
and you really want to show it
If you're angry and you know it
Stomp your feet. Stomp, Stomp.

If you're sad and you know it
Cry out loud. Boo hoo.
If you're sad and you know it
Cry out loud. Boo hoo.
If you're sad and you know it
and you really want to show it
If you're sad and you know it
Cry out loud. Boo hoo.

If you're scared and you know it
Give a shiver. Brrrr
If you're scared and you know it
Give a shiver. Brrrr
If you're scared and you know it
and you really want to show it
If you're scared and you know it
Give a shiver. Brrrr

If you're silly and you know it.
Laugh out loud. Laughter.
If you're silly and you know it.
Laugh out loud. Laughter.
If you're silly and you know it
and you really want to show it
If you're silly and you know it
Laugh out loud. Laughter.

If you're friendly and you know it
Wave hello. Hi, there!
If you're friendly and you know it
Wave hello. Hi, there!
If you're friendly and you know it
and you really want to show it
If you're friendly and you know it
Wave hello. Hi, there!

If you're sleepy and you know it
Give a yawn. Yawn
If you're sleepy and you know it
Give a yawn. Yawn
If you're sleepy and you know it
and you really want to show it
If you're sleepy and you know it
Give a yawn. Yawn

If you're excited and you know it
Shout hurray. Hurray.
If you're excited and you know it
Shout hurray. Hurray.
If you're excited and you know it
and you really want to show it
If you're excited and you know it
Shout hurray. Hurray.

If you're happy and you know it
Clap your hands. Clap, Clap.
If you're happy and you know it
Clap your hands. Clap, Clap.
If you're happy and you know it
and you really want to show it
If you're happy and you know it
Clap your hands. Clap, Clap.

Thanks (1)
13th Oct 2017 11:44

Threads like these make my sad little days just a little less sad. It's sad, I know.

Thanks (1)
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13th Oct 2017 11:52

agree that searching for the accounts is to be honest a tad weird.

As far as the question goes, it could have been put a little better....I am not a fan of the 'are we okay with this'....doesn't feel at the level I would expect within the profession (QBE or otherwise)...and when it comes time to pay for the advice will 'we' get paid - well those who provided answers

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13th Oct 2017 12:01

I hope Manchester United win tomorrow?
Do we agree, this is corect?

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