Going into a partnership but still working for company. Implications??

noclue1

Going into a partnership but still working for company. Implications??


Work for a government department on contract which is slowly coming to its end in about a year

Have an idea and myself and a friend want to move quickly.

Going to form a partnership with him called company bla bla. He is going to be the only person working for this company and the only one possibly drawing a wage. I will obviously be listed as a partner but nothing more.

1> My current employer will they find out i.e. will something from revenue come to office showing tax credits and bust me for being part owner in a biz

2> i will not be receiving any pay or potential profit for at least two years do i have to do some kind of tax return or assign tax credit to this partnership and again will my tax credit with my main employer be affected

3> as a partner in partnership when i get made redundant and the business can obviously not support me or god forbid is just as i lose my job being wound up will i be able to claim the dole. I've heard horror stories of self-employed people(electricians etc.) not getting a jelly bean

Tail Wagger

noclue1 wrote: »

Going into a partnership but still working for company. Implications??


Work for a government department on contract which is slowly coming to its end in about a year

Have an idea and myself and a friend want to move quickly.

Going to form a partnership with him called company bla bla. He is going to be the only person working for this company and the only one possibly drawing a wage. I will obviously be listed as a partner but nothing more.

1> My current employer will they find out i.e. will something from revenue come to office showing tax credits and bust me for being part owner in a biz

2> i will not be receiving any pay or potential profit for at least two years do i have to do some kind of tax return or assign tax credit to this partnership and again will my tax credit with my main employer be affected

3> as a partner in partnership when i get made redundant and the business can obviously not support me or god forbid is just as i lose my job being wound up will i be able to claim the dole. I've heard horror stories of self-employed people(electricians etc.) not getting a jelly bean

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I don't pretend to be a know all as regards these subjects, so I'll try and advise you as best I can.

1st go to a Charted Accountant, give him your plan.. the Company will have to be registered anyway. He'll tell you all the goings on in a business and what your entitled to claim and not claim.

I personally can't see any problem setting up a business and becoming a sleeping partner as such.. you will however have to pay tax on any drawings anyway. But if you are plowing money into the business your entitled to get it back over a period of time.

Best advice, go see a good charted Accountant and see what he says.. Good luck:cool:

WhyFronts?

Are you setting up a partnership or a company? They are two different things

You can be a director in the company and I would be very surprised if your boss/colleagues raised an eyebrow. Lots of people hold unpaid directorships in small businesses without it affecting their full time jobs or tax situation in anyway

Also I believe the fact that you receive no pay from your venture will mean that your social welfare entitlement is unaffected.

noclue1

Looked at ltd the expense and red tape was too much

so in answer to your question this will be a partnership as in two sole traders in buisness together

dbran

Hi

Your current employer is unlikely to find out in this way unless you ask for your credits to be reassigned for some reason. (Why would you want to do that?)

You will have to submit a tax return every year as you are now self employed as well as PAYE. (You can be both at the same time)

No. You should still be entitled to the dole as before as your PAYE income will still carry the "A" stamp.

Partnerships are very dangerous as you are jointly and severly liable for all the debts of the partnership. This means the other partner can run up debts in the name of the partnership and you will be responsible for paying them if he cannot. This is especially of concern if you plan to be a sleeping partner. You would be better off forming a limited company and shop around for a good quote.

Kind Regards

dbran

noclue1

Ok good info

on the flipside a director of a company what implications does this have for my current employer and possible social welfare

MOH

dbran wrote: »

Hi

No. You should still be entitled to the dole as before as your PAYE income will still carry the "A" stamp.

You won't be able to claim jobseeker's benefit while you're self employed - but if your side business were to end within a year or so, you'll be covered for it due to your PAYE payments while still in your government job

WhyFronts?

Being a director of a company does not automatically constitute being employed by that company. You can be an unpaid director and maintain welfare allowances.

Also holding the post of director should not effect your current position, unless there was some stipulation to the contrary in your current contract (i would be very surprised if that was the case)

MOH

noclue1 wrote: »

Ok good info

on the flipside a director of a company what implications does this have for my current employer and possible social welfare

I thought it was a partnership?

noclue1

I'm flip flopping as they call it

I want the best overall protection it appears that limited comapmy is the way to go instead of a partnership

fl4pj4ck

MOH wrote: »

You won't be able to claim jobseeker's benefit while you're self employed - but if your side business were to end within a year or so, you'll be covered for it due to your PAYE payments while still in your government job

not true. if you have enough stamps, and not getting any money from being self-employed, there's nothing stopping you from applying and getting JSB. my case was exactly the same, registered as self-employed in august (but with no income), contract ended in november, in 10 days my JSB was approved, now I am registered as self-employed(with no income out of it) and on the dole