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• # 85631
• Tue 02 Oct 2012 09:48 AM

Hi All have just joined this site.  I am  AAT qualified and run my own Bookkeeping Business.

A client has called me as her employer has asked that she set up a Limited company and invoice him instead of him paying PAYE.  His reason for the limited company rather than Self Employed is due to him being liable for someones tax so the limited company is to protect him.  She has no overheads at all and the turnover is approx £20K. 

As regards to her paying herself - do I need to set up PAYE for her or can she become sole trader and invoice the Limited Company although she will be director.

Any help all all with this I would be grateful.

 

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• # 85632
• Tue 02 Oct 2012 10:09 AM

Hi Wendy 

A very big welcome to the ICB forum.  Bit short on time today so sorry for the short response.   I really think you should refer to IR35 rules on the HM Revenue website  before you continue.     

Without knowing all the facts the Hm Revenue could argue the company has been set up to avoid tax and also for her customer to break employment regulations.   I would be careful on this one.   Have a good read of the IR35 rules. 

Hope this helps 

• Sarah Douglas C.FICB

  HouseTree Business Ltd 

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• # 85635
• Tue 02 Oct 2012 10:29 AM

Hi Sarah

Many thanks for your reply.  I wasn't sure wether to take this on or not  and you have made my mind up for me.

Thanks.

 

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