Advice needed on start up Civil Engineering PM company

[Skippy1]

Hi

I’m working in a Civil Engineering Consultancy, soon likely to be faced with 3 day working week, or perhaps less. I’ve been thinking about setting up my own project management company for some time, and think now may be as good a time as any to get things in motion.

I’m currently assisting both my brother and his wife, and my sister and her boyfriend with their planning applications etc for 2 new builds. I’m looking for advise on the following:

1. If I set up a company, and employ my sister’s (currently unemployed) boyfriend, and perhaps myself (if out of work at the time) – am I likely to run into difficulties if invoicing my sister (and her boyfriend) who in turn would be paying my company to PM the build from their mortgage?
2. Perhaps best if at outset situation explained to bank where mortgage drawn down from?

I’ll be involved in the management of the build in any case, but setting up a company would allow me to spend more of my time on site if needed (project managing and labour), and would also get my sister’s boyfriend back on his feet. Ultimately any time spent by us working on the project would be a saving on build cost, and would therefore be cost neutral for my sister.

Any advice very much appreciated!

 

[Joe_90]

Well,
Are you being paid for your service?
If you set up a company to provide the PM service and employ your sisters boyfriend you will have to deduct tax from his wages and in turn he will have to pay the company when you issue an invoice.
If you only want to charge for the service why not register as a sole trader get your insurance and work that way. It would be much cleaner. Don't employ your sisters boyfriend to work on his own house.

 

[Skippy1]

Thanks for advise Joe_90.

If I end up unemployed myself then I would look to work on the build and charge for my services. If I'm still in full time employment, just helping out offering advice etc, then would not be charging for my services.

I'm looking to set up as a ltd company as I'd like to protect the business name, and have the flexibility to hire people if the business takes off.

I’m aware of problems getting involved with family etc, but willing to take a risk to get him on his feet again. I would also benefit personally, if my employment situation changes and I needed work myself. Really just wondering from a business point of view if there is anything unethical about this arrangement.