Paying OH a Wage

supermonkey

Could anyone confirm the following please?

When completing OH SA, we tick employed & self employed. OH will then complete form SA102 (supplementary employment pages) with her SA tax return and enter my business name on there as employer. This will show how much was paid and that it was below the NI / tax threshold.

This means the SA tax return will clearly show the total earnt including both self employed earnings & employed earnings.

Since the total figure here is below £5075, the small earnings exception certificate still applies.

On my tax return, I will show the wage as an allowable business expense. This will tally up with OH return & should be enough info for HMRC.

Horace

I would be inclined to speak to your accountant - after all that is what you are paying him for, he can also complete and submit the self assessments on your behalf.

Remembering back to 2006 when I was employed and was self employed, I had to include figures from my P60 which came from my employed work as well as detailing profits from my self employed work.

You could always try calling the HMRC Self Employment line too as they can advise on what should be put in which box on the Self Assessment form.

Savvy_Sue

supermonkey wrote: »

This means the SA tax return will clearly show the total earnt including both self employed earnings & employed earnings.

Since the total figure here is below £5075, the small earnings exception certificate still applies.

I agree to speak to your accountant. However I can understand this bit, so I'll say that the small earnings exemption is only relevant to your self-employed income: in other words those who are paying tax and NI in an employed job can make a profit up to the exemption limit from their self-employment and not have to pay NI.

I hope that makes sense to the rest of you ...

supermonkey

Thanks for your replies.

supermonkey

On a seperate note, if in the future, we were to have a child, I understand with the small earnings exemption certificate maternity allowance would be £27 per week. There is also the option to just continue working throughout. This seems like the better option as if claiming maternity allowance I would have stop paying OH the wage (eg we would not actually be £27 a week better due to paying more tax). Lastly, we could cancel the certificate, repay the NI & get full allowance. The MA1 form (see link below) states that if you pay NI you will get the standard amount of £124.88. It looks like £12.60 per week to repay the NI (so £327.60!)

http://www.dwp.gov.uk/advisers/claimforms/ma1_print.pdf