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L.J.Thorpe

  • Posts: 2056
A round for the wife
« on: August 14, 2009, 08:23:01 pm »
yep this old chestnut again
Basically I have a round that is getting away from me  (again ::))
my wife had a nice little part time job in a hotel in our town but the owners sold it a few months ago and it aint such a nice little job anymore (erratic hours ,rubber pay cheques etc)
she has worked with me before and is ok trad cleaner
i have enough bungalows and ground floor commercial to split my round and let her do them,this will get me back on schedule and enable her to earn at least as much as she does now ;D
BUT what i want to know is the best option for tax purposes
do i employ her or should she become self employed and seperate busines or self employed and sub con to me ???
i know some of you do this so what do i need to know ??? ???
thanks

tony talbot

  • Posts: 258
Re: A round for the wife
« Reply #1 on: August 14, 2009, 09:08:54 pm »
i had the same problem a few months ago, i think it all depends on if your wife wants a stand alone buisness or you would both be happy working together 24/7  my own opinion is this needs to be decided before the tax issue. then just deal with the outcome regardless of the tax pro's and con's

DaveG

  • Posts: 6348
Re: A round for the wife
« Reply #2 on: August 14, 2009, 09:10:15 pm »
How much will she be earning?

My Mrs works with me and I can pay here £6400 per year on the PAYE scheme, without her paying any tax or NI contributions :)
You can't polish a turd

scud

  • Posts: 683
Re: A round for the wife
« Reply #3 on: August 15, 2009, 08:31:00 am »
  LJ,

   As said below, pay her up to the maximum before tax and NI, it comes off your tax liability but she doesn't have to pay tax on it.

  A word of warning though, my mrs has helped me before and they don't like the cold!