working for husband

Mikeyorks

chrismac1 wrote: »

"fringe benefits - you do get to sleep with the boss"

What is the correct box on the P11d for this, zygurat?

It's activity dependent.

• In the early months some of us would enter it in Section E - under mileage
• Moving on later to Section K - under 'services supplied'
• In the later years - one has a choice of Section I under 'private medical treatment'. Or, regrettably, Section L ' equipment provided for a disability'.

ceeforcat

Box L - assets placed at the employee's disposal.

pleasedelete

Hasn't your accountant already advised you to do this? It is really worth paying an accountant. Mine saves me 4x his annual costs at least.

Savvy_Sue

I don't remember the details, but I do vaguely remember that there was a case where HMRC were trying to 'do' a married couple for oodles of back tax where they were claiming that one was employed in the way the OP describes. And again, I vaguely remember that the case dragged on for years, going to appeal etc. However I thought it was eventually settled in favour of the couple.

Was it Arctic or something like that? I'm really surprised none of you accountants remember this ...

chrismac1

Income shifting and Arctic Systems aka Jones, amongst other cases. Result of that? Arctic 1 HMRC 0 after extra time and penalties. However, just in case the old income shifting mularky rears its ugly head again, its a prudent move to evidence any work done as much as possible, even where there is no remuneration but the spouse is a shareholder.

jimmo

From a quick Google, Arctic Systems involved an IT company with a turnover of £100,000 and HMRC were attacking what they saw as the artificially low wage of the husband and the artificially high amount of dividends, particularly to the wife.
When jimmo was a growing lad in the 1950s, the window cleaner pushed a home made handcart which carried his ladders, a bucket of water and his chamois leather.
He didn't have a horse, never mind a van, and he charged sixpence (the cost of a bar of chocolate, two and a half pence in today's money).
At the same the window cleaner was the only person that anybody in the neighbourhood knew who went abroad for his annual holiday.
Times change, and today, I find it difficult to imagine that a domestic window cleaner would generate an annual turnover anywhere near £100,000, and the tax saving opportunities that Arctic Systems seems to confirm are out of your league.
Instead you should think about how much time you actually spend assisting the business and what is a reasonable wage for that.
Our window cleaner charges us £6.00 a time and he turns up as and when he turns up, but I have no idea where he lives and certainly don't know his phone number.
So, speaking as a former taxman, I would struggle with the concept that you would have to spend hours and hours making yourself available to answer the phone.
Your husband is, almost certainly able to claim something for "wife's wages" and he should claim but it has to be realistic in your circumstances.

chrismac1

Not all window cleaners operate like that. I have one client who has a team of 3 and they have contracts to clean various caravan sites, one small school and so on. He has not got a partner - not a regular one! - so no income shifting for him! But my point is that these larger contracts are very much not a mere case of turning up as and when you feel like it and asking for cash in hand, they require a bit of nouse and admin. skills both to win and operate them properly.

The largest local window cleaner in my town - in the heart of the Lakes - employs around 20 folk and the biggest contract I know of which he runs involves cleaning the windows of a school with 1,600 pupils. If his wife is in the business - and I've no idea whether she is or not - then quite a decent salary is easily justifiable.

zygurat789

chrismac1 wrote: »

"fringe benefits - you do get to sleep with the boss"

What is the correct box on the P11d for this, zygurat?

If I told you, what value would you put in it?