Salary for doing no work

ab7167

The bit about OH's employer sacking me (because within first 12 months I would have very few rights anyway) and leave OH on £38k is to me the most worrying aspect - not that I ever ever think they would do it, the 2 blokes who own the firm are really decent blokes - but who knows what people will do when their back is to the wall? it will be our family for the chop before theirs, thats for sure!

other benefits I can think of include

my SERPS and accrued years will continue for my state pension
if I have another child, I will be entitled to maternity pay and the employer can claim this back from HMRC
my contributions record for JSA will be intact if the firm does go belly up
we will be better off (I think?)
it shouldn't cost employer anything (I think?

I suppose, the other problem could be if this arrangement continues for a few years, and we then split up - effectivley they would have to go through the process of sacking me before OH could get his whole salary back! Not that that is likely to happen - he and the kids are my world :-) But never say never, of course...

ab7167

I was asking because if it is illegal, we won't do it. I wanted to know if it was tax evasion (totally illegal and I wouldn't countenance this) or tax minimisation - which is legal, although HMRC do close loopholes as fast as people find them. If in the future, this did become illegal, we would cease the arrangement.

ab7167

I would be a bona fida employee, on the books, NI paid, risk assesments, rights to all the same benefits as all the other employees (all 3 of them), proper contract - I would just be doing very little work for my money, and OH would be doing an awful lot for his money. As stated, as I am qualified to do his job, effectively could we consider this a job share, with a very unequal share of the work?

Llyllyll

So you'll get £20k for very little, if you have another child you will be entitled to maternity pay and the employer can claim this back from [STRIKE]HMRC[/STRIKE] the taxpayer.

Llyllyll

ab7167 wrote: »

I would be a bona fida employee, on the books, NI paid, risk assesments, rights to all the same benefits as all the other employees (all 3 of them), proper contract - I would just be doing very little work for my money, and OH would be doing an awful lot for his money. As stated, as I am qualified to do his job, effectively could we consider this a job share, with a very unequal share of the work?

Unfortunately it doesn't matter what you consider the arrangement to be - it's what HMRC think that counts. Please - ask them or at the very least see an accountant.

ab7167

OK, there is a lot to think about here - and the point about Mat Pay coming from the taxpayer, is of course very vaild. To be honest, I can't beleive I didn't realise that this is where it comes from, stupid, but I'm a bit sleep deprived at the moment, with youngest only being 3 months old.

The other option is that we do a proper job share, and I work 2 days and he works 3. Would certainly solve the moral dilemma :-)

Llyllyll

I’m not saying there’s anything wrong with attempting to minimise tax, it’s just that I don’t think that a public forum is the best place for important decisions like this. Each situation has to be considered individually once all the facts are known. As I’ve stated, at the very least see an accountant to advise on this.

goRt

You need to cover the downside risks as others have said, get a written contract which spells out what happens if you lose your 'job' i.e. that everything reverts back to your OH

And seek advice from HMRC or at the very least an accountant

BoGoF

The fact that OH is a Director would make this proposal look very dodgy to HMRC. Put it this way if a similar situation arose and say OH's employer was Tesco do you think they would entertain it.

It's a contrived agreement to reduce your tax bill and one which HMRC, in my view, would take a dim view. If the company is prepared to do this what else are they up to ?

angelbob

ab7167 wrote: »

However, we do need to make up my income from somewhere. Not all of it, but we do need slightly more than OH brings home to keep ticking over.

you said that you needed to make more money this way you aren't making any.
can't you look for another job
plus you aren't sure whether you will loose your current one yet