Helping my partner with her home business

D.T.100 · 21 January 2017 at 1:10AM

Hi everyone, I'd be really grateful for any advice / steers please:

I'm employed full time in architecture, as was my partner until a year or so ago when we had a child, and she now stays at home with the little one.

But....she's recently been asked to draw up the odd extension. This sounds great, and in my eyes could work a treat for us because she could work a little bit of drawing here and there around sleeps and nursery slots. What's even better is that I'd be able to help her in my spare time, whether it be meeting prospective clients, doing the odd spot of drawing, a survey here and there. Whatever I can do to assist her when I can really.

Can I legitimately help my partner without somehow becoming liable for having to pay tax though?

She's in a great position in that she can earn circa 10k tax free, but of course I wouldn't be able to, due to already being employed full time.

Also, where would we stand re business cards and being contacted - if somebody rang her mobile or our house phone in the daytime and heard screaming children in the background and found communication difficult they'd probably run a mile. As such, I think it would be beneficial to have both of our names & numbers on them, maybe even with my name first to avoid the pre-mentioned risk. Could I even have my own cards for the same reason (i.e. his and hers)???

My concern is that it would appear from the outside - and potentially to HMRC - that it's a joint business, which it isn't. The simple fact of the matter being that without a little help here and there from me that she could suffer / struggle making a goer of this potential opportunity.

I'm not sure who to turn to / ask the question of - would anybody be able to steer me please?

Is anyone in a similar situation?

Many thanks in advance,
David

soolin · 21 January 2017 at 9:57AM

D.T.100 wrote: »

Hi everyone, I'd be really grateful for any advice / steers please:

I'm employed full time in architecture, as was my partner until a year or so ago when we had a child, and she now stays at home with the little one.

But....she's recently been asked to draw up the odd extension. This sounds great, and in my eyes could work a treat for us because she could work a little bit of drawing here and there around sleeps and nursery slots. What's even better is that I'd be able to help her in my spare time, whether it be meeting prospective clients, doing the odd spot of drawing, a survey here and there. Whatever I can do to assist her when I can really.

Can I legitimately help my partner without somehow becoming liable for having to pay tax though?

She's in a great position in that she can earn circa 10k tax free, but of course I wouldn't be able to, due to already being employed full time.

Also, where would we stand re business cards and being contacted - if somebody rang her mobile or our house phone in the daytime and heard screaming children in the background and found communication difficult they'd probably run a mile. As such, I think it would be beneficial to have both of our names & numbers on them, maybe even with my name first to avoid the pre-mentioned risk. Could I even have my own cards for the same reason (i.e. his and hers)???

My concern is that it would appear from the outside - and potentially to HMRC - that it's a joint business, which it isn't. The simple fact of the matter being that without a little help here and there from me that she could suffer / struggle making a goer of this potential opportunity.

I'm not sure who to turn to / ask the question of - would anybody be able to steer me please?

Is anyone in a similar situation?

Many thanks in advance,
David

Speaking honestly, and many years ago I worked as an accountant, the bits I have highlighted in red suggest this is either your business or a joint one and any attempt to pass this of as your wife's sole business is going to look suspicious. No one 'just helps out' by having their own cards and being the main point of contact, and I really wouldn't risk this.

HMRC do catch people, holding one of your cards or even being informed by someone (and that is very very common) that this is jointly your business might get an unpleasant interview.

There are ways to do this, but it would get complicated and you would need to approach an accountant to assist. A couple of things spring to mind, firstly a proper joint business with shared income or even talk to an accountant to see legitimately what share you feel you would work and what percentage would be taxed as yours. Or set up a company in your wife's name, employ you as a consultant , your cards would need to show you were working for (a title should do that) and do not own the business. Your wife's name would be on everything and clients would be aware you were a paid consultant.

Trying to get one over on HMRC but setting up your wife as a business and working it yourself is firstly fraud and secondly likely to get messy when caught. Go get proper paid advice and do it properly. You are a professional, trying to save a bit of tax balanced against being reported to your professional body and possibly being subject to restrictions on your practice at the very least is not worth it.

Kayalana99 · 21 January 2017 at 10:20AM

Honestly, it sounds like you are being a bit over baring to your wife. Sure she is quite capable of running this around children, I appreciate it's your area of expertise and you want to help but it's also hers.

As for phone calls, I've managed just fine taking enquires, and on the odd occasion a child has demanded my attention when I'm on the phone the caller has been really understanding about it.

Sorry if I'm coming across as harsh, it just reads to me your wife has a great opptunity here, and fair enough 'help' her if perhaps she gets behind with her work, but putting your name on cards, being the first name of contact, meeting clients etc....she needs to do this herself if it's her business, and if you decide to run it together? Great. Declare it to HMRC and do it proper.

warby68 · 21 January 2017 at 10:51AM

And also how will your employer feel about you having a related business on the side?

trailingspouse · 21 January 2017 at 3:17PM

Has she asked for help? What are her plans for the business?

You sound to me like you are genuinely excited for this opportunity for your wife - but there is no mention of what her thoughts and plans are. Maybe she's happy to just do the odd extension until the kids are at school, maybe she would find it helpful for you to have the kids while she talks to a client or concentrates on some plans.

If she wants to set up in business, I'm sure she's perfectly capable of doing so - but it will be her business. Offer to help, but don't take over.

societys_child · 21 January 2017 at 8:38PM

It's a bit of income for your wife, don't try and take over.
Of course you can help, in all kinds of ways, but why do you want to go meet her clients? You do your job, let her do hers. keep it simple, for now.

jkl123 · 18 November 2017 at 10:34PM

In respect to communication issue, why not have a email address as contact and put that they will get a call back at a time your wife is free, e.g when you are home to help with the kids.

soolin · 18 November 2017 at 10:47PM

jkl123 wrote: »

In respect to communication issue, why not have a email address as contact and put that they will get a call back at a time your wife is free, e.g when you are home to help with the kids.

I suspect after 10 months the OP has sorted out any issues they may have had. Also they only posted the once and haven't been back on MSE since January.

Helping my partner with her home business

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