[wpclean]

Does anyone know the tax implications of employing your spouse ?  Ie the tax allowence advantages etc ?

Or is it better to work as a partnership ? Would love to know others comments .

[Lee GLS]

if your wife doesnt work, then you can employ her and pay her up to her tax free allowance, which is roughly £6700. That way you wont pay the tax on that amount and it will save you roughly £1800 in tax.

[wpclean]

if your wife doesnt work, then you can employ her and pay her up to her tax free allowance, which is roughly £6700. That way you wont pay the tax on that amount and it will save you roughly £1800 in tax.

I suppose you would have to be carefull to make sure all NI contributions are paid so future pension wont be effected ?

[♠Winp®oClean♠]

Bear in mind if you get a HMRC investigation you'll have to prove she's actually worked for you & what work she has done etc. They'll know within minutes wether it's genuine or solely for the purpose of avoiding tax, usually the latter, then get ready!!!!

[Window Washers]

DO NOT Employ your wife, ARE YOU MAD ?

[wpclean]

She can do the work of 2 men , she puts me to shame !   She isnt working at the moment so it would make financial sense for her to work with me I think .

[prestige cleaners]

my wife joined me a year and a half ago, i think she was on £8 an hour as a legal secretary but now makes at least £20 per hour (in the amount of work she does compared to mine) not as quick obviously but ive missed her these last 3 weeks (off sick)

yes its much better for tax reasons, good idea to go limited, her personal tax bill this year was £0

and better than employing a grunt, at least the money stays in the household!

BUT remember you will argue! you need a lot of patience, and i wouldnt advise it, especially when the weather was bad, both of us couldnt work! but so far no divorce! 

[Blue Frog Systems]

My wife and I are a partnership. I clean and quote.... She does the rest.

Works well for us at the moment, but with her other business's growing as they are, were going to be going our seperate ways I think.

Partnerships have their advantages...Ltd is a good option to go down as a company can pay less tax than an individual.

Speak to an accountant about it first though

[prestige cleaners]

thats a good idea, i think i will sit in the van and read a paper and watch her work!

ha ha i dont think so! 

[AuRavelling79]

My wife does my books, banks the money and does our tax returns on a self employed basis. She also occasionally cleans with me on a big job - like a school. When the kids were small she didn't do secular work other than for me but now she also does two days a week as an LSA for special needs kiddies.

So it's genuine paid work she does for me.

In a previous life she has been an employee of my Ltd company. (Doing the accounts)

[Tom White]

I work with Wor Lass 3 or 4 days per week and have done so for about 8 years.  Sometimes it's great and we enjoy working together and sometimes we get on each others nerves.

Now and again I try to encourage her to get a 'proper job', but she's having none of it!