Tier 1 Extension - Self-Employed Director query

[ramkk]

Hi friends,

Any help with regards to my question would be greatly appreciated.

I am due for Tier 1 extension in December 2012.

I am employed as well as self-employed. Being a self-employed, I do work with another self-employed IT contractor and I raise invoices to him, and he transfers my share to my bank account from his company account. Now, he wants me to join his company as a director/share holder. The primary reason is he does not want me to leave him and go somewhere else.

Is it wise to do that or just go ahead with what I am currently doing?

If I join him as another director with 50:50 share, will it affect my tier 1 application? He is also due for Tier 1 extension next year.

Many thanks

[shargaur]

Extension doesn't depend upon the profit your company earns but depends upon the money (pay + dividend ) you pay yourself.

As self employed, you also get yourself paid likewise you do when you are director of the company

[ramkk]

Hi,

Like I said in my question, I am not a director. Currently, I am getting paid by him quarterly, i.e. another contractor, and he wants me to become a director of his company.

My query is whether if I become a director of the company, do all the documents related to the company need to be amended, such as Certificate of Inc, etc? Also, will it lead to detrimental effect as regards my application, because we both are awaiting extension.

[gaurav76.5]

its ok if you want to become a director..it wont have any impact..In order to become a director your frien would need to pass resolution int he board meeting citing that you have been made director in his company..that's all ..

On the other note are you a close relative of him or have a vested interest in his company...becoz the Company house guideline say that only a close relative or a person which have vested interest should become a director..

P>S Becoming a director wouldn't hamper your extension application at all