Employing your spouse (tax avoidance?)

Snash

Snash

Snash

Soldato
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My eldest starts school in August and the wife's thinking of jacking in her part time job to be a full time mum, since our youngest will start school next year.

I'm in a partnership and was thinking, is it possible to get the Firm to employ my wife as let's say a part time clerical worker and pay her up to the personal allowance (almost £5,000) out of my drawings? That way she wouldn't pay tax and we would benefit from the tax and NI I would have paid on that money. I'll be speaking to the accountant next week but wondered if anyone here had any experience of it?
 
A lot of contractors do it, because they are technically self-employed. It's a good way to get some work for your wife and avoid a bit of tax at the same time.
 
Aye best m8s mum works for his dad. Don't know how this tax stuff works, im a student so don't tend to pay much or know owt about it :D
 
Snash said:
My eldest starts school in August and the wife's thinking of jacking in her part time job to be a full time mum, since our youngest will start school next year.

I'm in a partnership and was thinking, is it possible to get the Firm to employ my wife as let's say a part time clerical worker and pay her up to the personal allowance (almost £5,000) out of my drawings? That way she wouldn't pay tax and we would benefit from the tax and NI I would have paid on that money. I'll be speaking to the accountant next week but wondered if anyone here had any experience of it?
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its better if you pay a big more use up her 10% part too, and make sure she pays at least a pound or two in ni.
 
Thanks for your replies guys. Looks like it's within the law but I'm going to have to persuade my other 25 Partners that it's a good idea. No doubt it's come up before within our partnership so need to see what the outcome was previously.
 
Didn't Iain Duncan Smith (of Conservative Party leadership fame) employ his wife as his secretary or a secretary in general? And part of what prompted the vote of no confidence in him by the party was something to do with allegations of rule breaking relating to him employing his wife?
 
If she (your spouse) is actually doing something relatively equatable to the salary received, i.e. she does some clerical work then it will be ok. Otherwise the Inland Revenue will not accept it and assess the salary on yourself or partnership I believe.
 
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