Perfectly routine business structuring. No issues with this at all, though a couple of minor questions:
How does he pay a salary of the personal allowance (currently £8,105) which is below the NI thresholds (£7,488 and £7,605)? Normal practice would be to pay at the NI threshold. I'd suggest he checks this with his accountant.
He must be doing pretty well to be VAT registered, given that his supplies will all be standard-rated and he has (one assumes) very little input VAT that might mean he'd want to register voluntarily. Has he considered the flat-rate scheme? Might save him quite a bit.
I assume he's considered the pension implications of not paying NI.
Do they have children? The Child Benefit Charge might become an issue soon.
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timeasmymeasure
no subject
Date: 2012-07-25 11:49 am (UTC)How does he pay a salary of the personal allowance (currently £8,105) which is below the NI thresholds (£7,488 and £7,605)? Normal practice would be to pay at the NI threshold. I'd suggest he checks this with his accountant.
He must be doing pretty well to be VAT registered, given that his supplies will all be standard-rated and he has (one assumes) very little input VAT that might mean he'd want to register voluntarily. Has he considered the flat-rate scheme? Might save him quite a bit.
I assume he's considered the pension implications of not paying NI.
Do they have children? The Child Benefit Charge might become an issue soon.