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Hello all
I have been prseented with the following scenariio, any advice appreciated.
A friend of mine works for a company as their accounts Manager. Lets call this Company 1. Company 1 pay their salary.
They also do the accounts for another company which trade from the same premises. Lets call this Company 2.
Company 2 have now offered this person a directorship with a small monthly salary.
This is in addition to the salary received from Company 1.
The individual has also been offered a directorship of Company 1 but with no increase in salary.
My questions are
1. The individual will become an employee of Company 2 so any salary will be taxed at Basic Rate as this is a second job?
2. Are there any NI implications. The salary is below the monthly threhold but the 2 companies have a common director.
3. Is there anything else they need to be awaye of?
Any advice gratefully received.
Thanks
John
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