Now then. As there is a wealth of info on ukrm, thought I'd pop this one on here. Considering a bit of a joint venture type thing with a chap who I do a lot of programming work for - he runs a small design/marketing/web type company. we work well together, but he just can't afford to employ me... :D We have been considering setting up something inbetween out two ltd companies to reduce the risk to either of us. To be able to do this effectively, I was thinking that we run stuff through the 3rd company, and I charge my time via my EKS company to the JV company at the standard sort of EKS rate around here that I usually get. The remainder stays in the JV for future expansion etc. the benefit to me is that I get his sales acumen and contacts and stuff, I still retain the EKS comapny as main shareholder, he only benefits from teh 50/50 split of the excess over what I need to support family/mortgage/wine. I also get to build a real company with him instead of an EKS only company he benfits by not having to pay me a huge amount in salary if I were to join him directly, or he doesn't have to surrender a good proportion of his company to me as a driector/shareholder (enough to earn me my required amount) if I were to to a salaried role in the JV to take my lions share of the proceeds (it'll be coding work so less for him to do) I would be hit for huge amounts of tax that I don't currently get hit for as EKS The reason this has come about is that there is a fair chunk of work that has come our way that I would have to do full time and we see it as a springboard to do further things together. Did all that make sense? The worry I have is that hmrc might take a dim view of the recharging of the EKS time to the JV company? TIA.
