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Tax and a second income.

skegyuk
skegyuk Posts: 64 Forumite
in Cutting tax
Hi All,

I run an online business and also work a full time job, I was wondering as my partner does not work can I make her a director of my online business and pay her?

The reason I ask if that I am on the 40% tax rate and she doesn't earn at all so gets 10k tax free + anything over that is 20%.

The problem is that I don't want to do anything that can get me in trouble and the truth is that she does not do any work on the online business apart from helping with the accounts once a year.

Cheers,
Danny

Comments

  • purdyoaten
    purdyoaten Posts: 1,159 Forumite
    Is the online business a limited company and are you the only director?
    There are 10 types of people in the world - those who understand binary and those who do not. :doh:
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