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  • FIRST POST
    • samcrows
    • By samcrows 6th Jun 17, 5:09 PM
    • 1Posts
    • 0Thanks
    samcrows
    Paying my wife to qualify for child benefit
    • #1
    • 6th Jun 17, 5:09 PM
    Paying my wife to qualify for child benefit 6th Jun 17 at 5:09 PM
    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
Page 1
    • Guest101
    • By Guest101 6th Jun 17, 5:17 PM
    • 15,128 Posts
    • 14,763 Thanks
    Guest101
    • #2
    • 6th Jun 17, 5:17 PM
    • #2
    • 6th Jun 17, 5:17 PM
    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
    Originally posted by samcrows


    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.
    • Icequeen99
    • By Icequeen99 6th Jun 17, 5:47 PM
    • 3,453 Posts
    • 2,350 Thanks
    Icequeen99
    • #3
    • 6th Jun 17, 5:47 PM
    • #3
    • 6th Jun 17, 5:47 PM
    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.
    Originally posted by Guest101
    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.

    IQ
    • Housing Benefit Officer
    • By Housing Benefit Officer 6th Jun 17, 5:51 PM
    • 2,394 Posts
    • 4,258 Thanks
    Housing Benefit Officer
    • #4
    • 6th Jun 17, 5:51 PM
    • #4
    • 6th Jun 17, 5:51 PM
    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.
    • xylophone
    • By xylophone 6th Jun 17, 6:11 PM
    • 23,428 Posts
    • 13,622 Thanks
    xylophone
    • #5
    • 6th Jun 17, 6:11 PM
    • #5
    • 6th Jun 17, 6:11 PM
    Had you thought of making a pension contribution?

    https://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners
    • Darksparkle
    • By Darksparkle 6th Jun 17, 8:10 PM
    • 4,654 Posts
    • 2,940 Thanks
    Darksparkle
    • #6
    • 6th Jun 17, 8:10 PM
    • #6
    • 6th Jun 17, 8:10 PM
    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.
    • TELLIT01
    • By TELLIT01 6th Jun 17, 8:23 PM
    • 4,106 Posts
    • 4,234 Thanks
    TELLIT01
    • #7
    • 6th Jun 17, 8:23 PM
    • #7
    • 6th Jun 17, 8:23 PM
    Wouldn't your accountant be the best person to advise on this?
    • camelot1971
    • By camelot1971 7th Jun 17, 9:18 PM
    • 483 Posts
    • 754 Thanks
    camelot1971
    • #8
    • 7th Jun 17, 9:18 PM
    • #8
    • 7th Jun 17, 9:18 PM
    A great attempt at a troll thread but no one is biting
    • theronstar
    • By theronstar 15th Jun 17, 3:40 AM
    • 59 Posts
    • 27 Thanks
    theronstar
    • #9
    • 15th Jun 17, 3:40 AM
    • #9
    • 15th Jun 17, 3:40 AM
    Are there often people who come along with hypotheticals in order to test forum members?
    • Cheeky_Monkey
    • By Cheeky_Monkey 15th Jun 17, 11:06 AM
    • 1,371 Posts
    • 2,659 Thanks
    Cheeky_Monkey
    In a word - yes
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