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Ross Miller
Ross Miller,
Category: Employment Law
Satisfied Customers: 1830
Experience:  Director (Litigation and Mediation) at Hilltop Solutions
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I am starting out a self employed carer with my friend as a

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I am starting out a self employed carer with my friend as a company, with only the two of us and we are doing the care. We want to know what type of business type we should use ie a partnership with Ltd but what are the tax implications, as we will not be earning over corporation tax level
Customer: replied 6 months ago.
Hi I am still waiting for the answer

Hello my name is ***** ***** I can help with this matter. I will just write up my response now.

Customer: replied 6 months ago.
Thanks we are in uk
Customer: replied 6 months ago.
No thanks I would like it written then I will digest it easier and can show it to my partner

You can ignore the phone request as it is automatically generated by the website. I will respond in writing now.

If you are not earning over the corporation tax level then you should look at staring a limited company. The reason for this is that it limits the liability of the directors and if, for example the company was to get into extreme debt then you cannot lose your house etc. to pay the debt off. What will happen is you will open the limited company then you and your partner will be employees of that company. You will have to appoint an accountant who will ensure that you are paying the correct amount of income tax as if you were an employee of any other company. You will also be able to take tax free dividends from the company on top of your salary. If you just decide to enter into a normal partnership then you would have to declare what you have earned from the company at the end of the year and pay tax on this. Additionally you can charge the limited company for travel and some other expenses. So in this case I would advice looking at a limited company.

I hope this information has helped. You can find a local solicitor who deals with this on the law society webpage which is;

https://solicitors.lawsociety.org.uk/

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Kind regards

Ross

Ross Miller and 2 other Employment Law Specialists are ready to help you
Customer: replied 6 months ago.
Would becoming a ltd company mean that we would have to go through the cqc to do the carer work?
Customer: replied 6 months ago.
I meant to be licenced by them

Being a limited company will not have any effect on this, you will have to undergo the correct checks regardless of what type of company you are operating from.

Customer: replied 6 months ago.
I have been reading that as a self employed carer, providing that I have insurance and current DBS checks and the experience of the work that I would not need to be cqc registered or registered with the council.
Customer: replied 6 months ago.
As I am working one to one with the client effectively is buying the services I offer there is no medical care involved or medications administration, purely up, dress making meals, general sitting and befriending , light housework.