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Self Employed And Paying Wife For Work

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Comments

  • Mikeyorks
    Mikeyorks Posts: 10,378 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    terryw wrote: »
    Mike,

    On a practical level it is unlikely that HMRC will insist that a PAYE scheme is opened as no tax will be due ..........

    Terry ....... thanks, but I do realise that. But my main thrust is that the OP still seems to regard 'self employed' as being a potential. When it is not.

    Whether HMRC opens a PAYE scheme or not is relatively academic to the initial (and subsequent) post. But they should do so - as the 'other' employment may push the wife over the threshold for tax.
    If you want to test the depth of the water .........don't use both feet !
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Self-employment is a non-starter for the wife, I agree Mike. Assuming that the combined earnings do not exceed the personal allowance, smashing, but if not then there is little alternative but to open a PAYE scheme, but,again, this is hardly a mountain to climb.
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • TuftyMatt
    TuftyMatt Posts: 174 Forumite
    Hi everyone,

    I pay high rate tax in my full time job and earn money each month as a self employed consultant for a friends business.

    To reduce tax could I get my partner, who is a housewife on no income, to invoice me for work I could get her to do?

    My point is the extra income is not much and 40% of it going in tax makes it hardly worthwhile at this stage. If my partner could do some of it and reduce my profit / tax then it's more worthwhile.

    Would I just pay her cash and keep copies of her invoices for my tax records?

    Thanks in advance.
    It's far better to be penny wise than pound foolish.

    :beer:
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    TuftyMatt wrote: »
    Hi everyone,

    I pay high rate tax in my full time job and earn money each month as a self employed consultant for a friends business.

    To reduce tax could I get my partner, who is a housewife on no income, to invoice me for work I could get her to do?

    My point is the extra income is not much and 40% of it going in tax makes it hardly worthwhile at this stage. If my partner could do some of it and reduce my profit / tax then it's more worthwhile.

    Would I just pay her cash and keep copies of her invoices for my tax records?

    Thanks in advance.

    Far better to post your own thread - life becomes difficult with several topics going at once on the same thread.

    bw.
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
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