Wife not working, tax benefits?

samsip

Hi,
My wife is currently not working, and is a fulltime mum/housewife. We are about to enter the world of savings accounts, and my income is such that I am on a higher tax bracket.

I was wondering if there are any issues with me passing my disposable income to my wife and she setting up the savings accounts in her name, so paying less tax? Obviously we both have ISAs which are full, so I am wondering how to handle the extra money and the best way to do things.

Is that allowed, or is there a better way to do it?

thank you

Sam

jem16

It's perfectly acceptable to do this.

Just remember that the money technically becomes hers - but I'm sure you trust her.

jennifernil

If your wife is not paying tax, or even if she was paying at a lower rate, it make sense to place your savings in her name. She can register for gross interest and receive interest up to her allowance tax free, and then some at 10% tax.

There is no problem moving money between spouses.

samsip

thank you I just wanted to be sure, dont want the tax man knocking on my door asking where my money is !!

Is there a limit to how much I can give to her?

jem16

samsip wrote: »

Is there a limit to how much I can give to her?

No there is no limit.

Lokolo

But one should have a limit, women can never be trusted...

You will find your house quickly fill up with shoes, handbags and clothes.

Good Luck.



p.s. don't forget to fill out the R85s to get tax free interest

samsip

thank you all Will definitely keep that all in mind. At least i'll have the house and my ISA all to myself. Just hope she gives me a few years before she decides to take the savings and run.

jem16

Lokolo wrote: »

You will find your house quickly fill up with shoes, handbags and clothes.

As opposed to gadgets, techie toys and muddy football gear.

zygurat789

Since day one we have had a current account in joint names and an associated deposit account in the name of the lower taxpayer just by asking the bank to do it all transactions from both accounts are on either signature but all the interest is in the name of the lower taxpayer.

jennifernil

Lokolo wrote: »

But one should have a limit, women can never be trusted...

You will find your house quickly fill up with shoes, handbags and clothes.

Good Luck.



p.s. don't forget to fill out the R85s to get tax free interest

Oooooooh! Naughty, naughty!

soul-replacement

I think that everyting had been said. Lokolo, love your post