Tax question (Renting property and running a business)
Discussion
What would the tax implication be of renting out your home at less than it was costing (mortgage) when living in other rented property - so only owning on place?
I'm currently PAYE paying 40% tax. I'm buying a franchise but getting someone else to run it. Again what is the tax situation if the business isn't paying me any money but paying the wages of the person who is running the company?
Also do I have to give them a contract and sort their tax or could they be selfemployed and sort themselves out?
I'm currently PAYE paying 40% tax. I'm buying a franchise but getting someone else to run it. Again what is the tax situation if the business isn't paying me any money but paying the wages of the person who is running the company?
Also do I have to give them a contract and sort their tax or could they be selfemployed and sort themselves out?
Right, thank you, I think I've got it.
The franchise is to be purchased by my wife to run with her sister. My wife is employed and paying 40% tax. Until the business takes enough money to allow her to leave work she will work unpaid and any profit will be used to purchase larger areas of the franchise.
My sister in law will also be running the franchise (mostly her actually) and again won't take a wage as they want to pay off the loan they'll have to purchase the initial franchise (our loan) and then buy further areas with future money they make. Sister in law is currently stay at home mum and earns nothing.
We wanted to put franchise in my wifes name as we'll be doing the initial borrowing (from bank or similar). Also my wifes sister isn't currently in a very stable financial situation and is in an IVA (I think that's what it's called) situation. Obviously if she ends up going full on bankrupt or similar we don't want it to affect the franchise.
So, thoughts on that? LTD Co? Should we declare and interest of sister in law on LTD Co or just employer her through it?
Thanks again for your help.
The franchise is to be purchased by my wife to run with her sister. My wife is employed and paying 40% tax. Until the business takes enough money to allow her to leave work she will work unpaid and any profit will be used to purchase larger areas of the franchise.
My sister in law will also be running the franchise (mostly her actually) and again won't take a wage as they want to pay off the loan they'll have to purchase the initial franchise (our loan) and then buy further areas with future money they make. Sister in law is currently stay at home mum and earns nothing.
We wanted to put franchise in my wifes name as we'll be doing the initial borrowing (from bank or similar). Also my wifes sister isn't currently in a very stable financial situation and is in an IVA (I think that's what it's called) situation. Obviously if she ends up going full on bankrupt or similar we don't want it to affect the franchise.
So, thoughts on that? LTD Co? Should we declare and interest of sister in law on LTD Co or just employer her through it?
Thanks again for your help.
Thank you once again.
I presume there would be a minimum wage issue if she is an employee. Could my wife say run the business take no pay and plough everything back into paying off the loan and buying a larger area and pay no tax?
Obviously sister in law would be doing the physical work but not officially - No wage or expences.
I presume there would be a minimum wage issue if she is an employee. Could my wife say run the business take no pay and plough everything back into paying off the loan and buying a larger area and pay no tax?
Obviously sister in law would be doing the physical work but not officially - No wage or expences.
Gassing Station | Business | Top of Page | What's New | My Stuff