Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Dick on March 19, 2012, 08:01:17 pm

Title: Paying wife,partner etc
Post by: Dick on March 19, 2012, 08:01:17 pm
My wife who's now finished full time work has been doing some admin work for me, the amount I pay her will be below the personal allowance before tax is due, does anyone else do this? If so what evidence do I need to have if I have to produce it if HMRC want proof. I presume I just show the same amount on my self assessment as a business expense.
She's been doing work whilst I wasn't working last year through an injury.
Title: Re: Paying wife,partner etc
Post by: KS Cleaning on March 19, 2012, 09:19:28 pm
You will have to get a P46 form to declare she is employed by you.
Title: Re: Paying wife,partner etc
Post by: bad trippy on March 19, 2012, 09:41:35 pm
Make her a partner, then the first 16k you wont get any tax on.
By yourself its only 8k
Title: Re: Paying wife,partner etc
Post by: Dougaldum on March 19, 2012, 11:39:23 pm
Quote from: bad trippy link=to ???pic=149659.msg1236463#msg1236463 date=1332193295
???
Make her a partner, then the first 16k you wont get any tax on.
By yourself its only 8k

where do you get this from i would like to know
Title: Re: Paying wife,partner etc
Post by: steve rix on March 20, 2012, 12:38:06 am
Nobody in the uk can eran £16K without paying tax. Get a second opinion
Title: Re: Paying wife,partner etc
Post by: LWC on March 20, 2012, 06:37:01 am
£8k each personal allowance x 2 = £16k
Title: Re: Paying wife,partner etc
Post by: bad trippy on March 20, 2012, 07:44:01 am
£8k each personal allowance x 2 = £16k
[/quote
Yeppers  :)
Although aint it due to go up in April to over 8k?
Title: Re: Paying wife,partner etc
Post by: Tom White on March 20, 2012, 07:51:01 am
Nobody in the uk can eran £16K without paying tax. Get a second opinion

Not one person, but two can.  Each person has a personal tax allowance of £8k, so by using your partner's/wife's tax allowance - if she works for the business and has no other source of taxable income - means the business can make £16k profit that will not be subject to tax.
Title: Re: Paying wife,partner etc
Post by: Ian101 on March 20, 2012, 08:38:32 am
Nobody in the uk can eran £16K without paying tax. Get a second opinion

Not one person, but two can.  Each person has a personal tax allowance of £8k, so by using your partner's/wife's tax allowance - if she works for the business and has no other source of taxable income - means the business can make £16k profit that will not be subject to tax.

100% correct !
Title: Re: Paying wife,partner etc
Post by: Ian101 on March 20, 2012, 08:39:13 am
except its going up soon to just under £8500 each !! :)
Title: Re: Paying wife,partner etc
Post by: carl stanton on March 20, 2012, 08:41:21 am
Nobody in the uk can eran £16K without paying tax. Get a second opinion

Not one person, but two can.  Each person has a personal tax allowance of £8k, so by using your partner's/wife's tax allowance - if she works for the business and has no other source of taxable income - means the business can make £16k profit that will not be subject to tax.

and that is after business expenses  ;D

is she an employee or self employed? only need p46 for an employee
Title: Re: Paying wife,partner etc
Post by: Tom White on March 20, 2012, 08:42:41 am
Nobody in the uk can eran £16K without paying tax. Get a second opinion

Not one person, but two can.  Each person has a personal tax allowance of £8k, so by using your partner's/wife's tax allowance - if she works for the business and has no other source of taxable income - means the business can make £16k profit that will not be subject to tax.

and that is after business expenses  ;D

Which is why I used the word 'profit'!  :D
Title: Re: Paying wife,partner etc
Post by: carl stanton on March 20, 2012, 08:57:03 am
sorry tosh  ;D

me is a plum   ::)   
Title: Re: Paying wife,partner etc
Post by: Window Washers on March 20, 2012, 12:18:58 pm
sorry tosh  ;D

me is a plum   ::)   
have to agree  :-X


 ;D
Title: Re: Paying wife,partner etc
Post by: Dick on March 20, 2012, 03:18:13 pm
Neither employee or s/employed yet, have only just notified HMRC that she has received income from me which allowing for her state pension will still be below personal allowance of £7475 for current tax year. Personal allowance increases after 5th April to £8105 so may have to give a pay rise then!
Title: Re: Paying wife,partner etc
Post by: Ian101 on March 20, 2012, 11:14:27 pm
9000 thou from 2013 in tomorrows budget