[Dick]

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]

You will have to get a P46 form to declare she is employed by you.

[bad trippy]

Make her a partner, then the first 16k you wont get any tax on.
By yourself its only 8k

[Dougaldum]

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]

Nobody in the uk can eran £16K without paying tax. Get a second opinion

[LWC]

£8k each personal allowance x 2 = £16k

[bad trippy]

£8k each personal allowance x 2 = £16k
[/quote
Yeppers 
Although aint it due to go up in April to over 8k?

[Tom White]

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]

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]

except its going up soon to just under £8500 each !!

[carl stanton]

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 

is she an employee or self employed? only need p46 for an employee

[Tom White]

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 

Which is why I used the word 'profit'! 

[carl stanton]

sorry tosh 

me is a plum   :   

[Window Washers]

sorry tosh 

me is a plum   :   

have to agree 


 

[Dick]

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]

9000 thou from 2013 in tomorrows budget