[Pure Glass]

A mate of mine has just suggested registering my wife as a partner as then it increases the tax break to around 13k.

Do any of you use this to your advantage? My accountant hadnt mentioned it last time I was with him and we discussed my wifes involvement in the business.

Is it true?

Ta, Steve

[Sean Dyer]

If she actually works then yeah

If she doesnt you are walking a fine line as in any inspections they may find out and tax you !
But just get here to do some office work , or a days cleaning?

There are 2 ways you can use here

1. self empoyed like you , you both have 6-7 k tax allowance and must both put in a tax return , only problem with this is she could be deemed an employee unless everything is seperate

2. go ltd and both are partners/directors

you get the amount below NI threshold each about 10k s year and then pay 20 % corporation tax on company profit and then get about 40 k each in dividends tax free

Something like that would work

[dave0123]

It would depend if she already has an income and of how much if she has then there would be no point to it

[A & J Owen Window Cleaning]

you could set up a partnership agreement between the 2 of you and that would do it mate

[Pure Glass]

So how do I go about setting up a partnership agreement?

Just let HMRC know?

[H S and Son]

You can 'pay' her £82.00 a week with no need for invoices or receipts.

[Smudger]

we are a partnership - fi you have an accountant then get them to raise all the paperwork, downside is it costs to set up and your accountants bill is slightly higher as it's 2 tax returns - but well worth it, unless she has a PAYE job of course

Darran

[DaveG]

I pay my wife just over 6k a year and its cost about another £20 a year in accountants fees. He just put it down as "wifes wages" with no need for pay slips etc. And mrs doesnt have to pay tax or ni.
Going to talk to accountant this year about going ltd (pros and cons)