Director of a Ltd company while employed / Tax benefits??

[Spud1985]

cutting a long story short ... Ive been looking into setting up a small ltd business with a friend. Both will be directors of the company however the business will be his sole income where i will still be employed elsewhere.

He would take a set wage each month alongside all the other running costs and then any profits at the end of the year would be split

We would also both be leasing vehicles through the company, working out the tax implications for my friend is fairly standard but how would it work for me when I'm employed elsewhere? Or would it be the same? i.e BIK and would this alter my PAYE code? Or is the tax payable as a lump sum at the end of the year alongsie the Tax on any profit we make through the business keeping my tax separate from my PAYE?

Any advice and help would be appreciated

[s2sol]

I was in exactly the same situation until fairly recently. I reported the P11D value of the vehicle to HMRC and the tax code used by my PAYE employer was amended. I suppose you could leave reporting the BIK value until you complete your self assessment. I was more comfortable doing it at the time.

Trying to get them to believe I no longer hava a company vehicle is a bloody nightmare, though.