partner tax allowance question? myself employed, partner self employed

Midnight_Tboy

Hi all.

So I work myself in full time employment (around 22k salary)

As far as I understand it...for last year I had a tax code of 944 and I believe this year it is meant to be 100 (or something to that effect - basically a 10k allowance)



For the past several years my partner hasn't worked and has been looking after the children/home maker etc.

We live together, but are not married, and have 2 children.

Anyways.....we are thinking of going down the self employed route for my partner whilst I continue working in my current job.

I am just wondering when it comes to the personal allowance for my partner, would that also be 10k....or is the 10k allowance joint between a family, and so would be taxed on the full amounts?

I understand that when she is self employed, once reached a certain amount of profit, she has to pay extra National Insurance (I believe is meant to be in region of 29% total including the taxes) but if she has to pay tax on the full amount from £1+ what with me also working...it will work out much less beneficial

I'm assuming it would be the same outcome regardless of my partner being in a full time position, or self employed which intending to go down the route of


Thanks

Midnight_Tboy

thanks - that's great - makes going for it much more viable (tho nerve-racking) an option....as when we were looking at how fastly child tax credits dropped when wages go up (ie 41p per £1 earnt), it started to look like a case of 'why bother'