Paying my wife to qualify for child benefit
Options
samcrows
Posts: 1 Newbie
Hi there,
I hope I'm posting in the right place - would be really grateful for help with this.
My wife is employed (part-time), earning around £8,000 p/a. I'm self-employed, earning around £60,000 p/a.
I would like my wife to do a bit of work for my business. If I pay her (as a freelancer) around £12,000 p/a, can we then claim child benefit and reduce our tax bill without running into problems?
Thanks,
Sam
I hope I'm posting in the right place - would be really grateful for help with this.
My wife is employed (part-time), earning around £8,000 p/a. I'm self-employed, earning around £60,000 p/a.
I would like my wife to do a bit of work for my business. If I pay her (as a freelancer) around £12,000 p/a, can we then claim child benefit and reduce our tax bill without running into problems?
Thanks,
Sam
0
Comments
-
Hi there,
I hope I'm posting in the right place - would be really grateful for help with this.
My wife is employed (part-time), earning around £8,000 p/a. I'm self-employed, earning around £60,000 p/a.
I would like my wife to do a bit of work for my business. If I pay her (as a freelancer) around £12,000 p/a, can we then claim child benefit and reduce our tax bill without running into problems?
Thanks,
Sam
Short answer is no. You are self employed, your income is over £50,000, how you spend that is irrelevant.
If you had a company and employed yourself and her, then that would be different. But you would also be running a company.0 -
Short answer is no. You are self employed, your income is over £50,000, how you spend that is irrelevant.
If you had a company and employed yourself and her, then that would be different. But you would also be running a company.
That's not correct - if he is self-employed as a sole trader an employee would be a legitimate expense that can be deducted before his tax is calculated just like any other expense. Or she could be self-employed and invoice him, either way it is deductible as a business expense.
IQ0 -
If the rules allow you to do this go ahead.These are my own views and you should seek advice from your local Benefits Department or CAB.0
-
Had you thought of making a pension contribution?
https://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners0 -
You'll want to do a status check first to make sure she's genuinely employed or self employed so tax and nic can be dealt with appropriately. I also wouldn't say to HMRC that your pay her so you get child benefit.0
-
Wouldn't your accountant be the best person to advise on this?0
-
A great attempt at a troll thread but no one is biting0
-
Are there often people who come along with hypotheticals in order to test forum members?0
-
In a word - yes0
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards