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Dick

  • Posts: 304
Paying wife,partner etc
« 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.

KS Cleaning

  • Posts: 4106
Re: Paying wife,partner etc
« Reply #1 on: March 19, 2012, 09:19:28 pm »
You will have to get a P46 form to declare she is employed by you.

bad trippy

  • Posts: 3268
Re: Paying wife,partner etc
« Reply #2 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
www.clearviewbristol.co.uk
Add me on Facebook clear view window cleaning

Dougaldum

  • Posts: 496
Re: Paying wife,partner etc
« Reply #3 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

steve rix

  • Posts: 816
Re: Paying wife,partner etc
« Reply #4 on: March 20, 2012, 12:38:06 am »
Nobody in the uk can eran £16K without paying tax. Get a second opinion

LWC

  • Posts: 6824
Re: Paying wife,partner etc
« Reply #5 on: March 20, 2012, 06:37:01 am »
£8k each personal allowance x 2 = £16k

bad trippy

  • Posts: 3268
Re: Paying wife,partner etc
« Reply #6 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?
www.clearviewbristol.co.uk
Add me on Facebook clear view window cleaning

Tom White

Re: Paying wife,partner etc
« Reply #7 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.

Ian101

  • Posts: 7889
Re: Paying wife,partner etc
« Reply #8 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 !

Ian101

  • Posts: 7889
Re: Paying wife,partner etc
« Reply #9 on: March 20, 2012, 08:39:13 am »
except its going up soon to just under £8500 each !! :)

carl stanton

  • Posts: 821
Re: Paying wife,partner etc
« Reply #10 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

Tom White

Re: Paying wife,partner etc
« Reply #11 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

carl stanton

  • Posts: 821
Re: Paying wife,partner etc
« Reply #12 on: March 20, 2012, 08:57:03 am »
sorry tosh  ;D

me is a plum   ::)   

Window Washers

  • Posts: 9036
Re: Paying wife,partner etc
« Reply #13 on: March 20, 2012, 12:18:58 pm »
sorry tosh  ;D

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


 ;D
If your not willing to learn, No one can help you, If you are determined to learn, No one can stop you ;)

Dick

  • Posts: 304
Re: Paying wife,partner etc
« Reply #14 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!

Ian101

  • Posts: 7889
Re: Paying wife,partner etc
« Reply #15 on: March 20, 2012, 11:14:27 pm »
9000 thou from 2013 in tomorrows budget