Poll

Have you sent off your 04/05 Tax Return Yet?

Yes
No

John Kelly

  • Posts: 4461
Re: Who says 'Tax doesn't have to be Taxing'?
« Reply #20 on: January 11, 2006, 09:14:02 am »
Hi Tosh1

Just lurking from the carpet cleaning forum.
You'd be better off making her a partner. I take it you are operating as a sole trader. If you employ her you would have to set up a payroll scheme, more bloody paperwork. Although if you pay her less than £90 per week there would be no tax or national insurance to pay.
If you make her a partner and imply that she carries out all the admin work from home you may also claim for office expenses. I.E if you use a spare bedroom as an office, divide your house into rooms and calculate the amount it costs to heat that room etc. This can then be declared as a business expense. One room won't affect your house by making it a commercial premises.
It also means that your taxable profit at the end of the year is divided by 2 with 2 tax allowances, thats provided she doesn't have another income.

Cheers
from a fellow Geordie!

Re: Who says 'Tax doesn't have to be Taxing'?
« Reply #21 on: January 11, 2006, 01:56:00 pm »
Cheers for the help, John,

I think that's the way ahead; she'll become a partner.

That's what she is anyway.  She works cleaning windows with me for around 80% of the time.

I've just dropped her off back home so she can sort out the domestic stuff (dog walking, etc) while I will go out and do some more work.

Cheers to the rest of you too.