Self assessment and tax credits

GOLFER

I am currently self employed and my wife is on a bursary doing a nursing course.

My 2011/2012 and 2012/2013 accounts are over due and i am getting them prepared as we speak to be processed online today.

I pay my wife £100 per week for admin, ie she answers phones does paper work etc. Does she put that on her side of the tax credits form so she is working 16+ hours to enable us to claim for Nursery fees etc

I will be showing this in my accounts as an expense but i dont have a PAYE ref no. I have a UTR no. The tax credit people are looking for a PAYE no.

What is the best way to get round this?

1. dont show her in the acxcounts as being paid
2. do i need to apply for a paye number and can i use it from April 11 till now.
3. Just show her as being paid and add it into the tax crdit form.

We are presently going through a separation but still live together untill the house is sold. Would it be better to tell them we are separated and make individual claims. would this be allowed as we are still living in the same house.

hope someone can help

[Deleted User]

GOLFER wrote: »

I am currently self employed and my wife is on a bursary doing a nursing course.

My 2011/2012 and 2012/2013 accounts are over due and i am getting them prepared as we speak to be processed online today.

I pay my wife £100 per week for admin, ie she answers phones does paper work etc. Does she put that on her side of the tax credits form so she is working 16+ hours to enable us to claim for Nursery fees etc

Decide if she is employed by you or self employed. If she is employed then you should operate PAYE, and should have done previously.

If she is self employed has she got her UTR and will she also complete her own return now.

If she is self employed, you can still give tax credits the relevant number of hours.

I will be showing this in my accounts as an expense but i dont have a PAYE ref no. I have a UTR no. The tax credit people are looking for a PAYE no.

Once you have confirmed the above, I can advise.

What is the best way to get round this?

1. dont show her in the acxcounts as being paid
Why would you not?
2. do i need to apply for a paye number and can i use it from April 11 till now.
If she is employed you should have done so already.
3. Just show her as being paid and add it into the tax crdit form.
They will check this against your return (well maybe) and when it does not match they will amend your award.

We are presently going through a separation but still live together untill the house is sold. Would it be better to tell them we are separated and make individual claims. would this be allowed as we are still living in the same house.

I don't think you can make single claims, you would most probably be investigated.

hope someone can help

I do hope that this helps.