Can I employ my wife?

Maggie.Moo_2

I've read this whole thread and I can't understand why you don't qualify for the Childcare Grant from Student Finance.

I get this myself and although I'm a lone parent working on a zero hours contract, I'm fairly certain it isn't income assessed. You're not claiming the childcare element of Working Tax Credits/Universal Credit are you? You mentioned your wife is attending medical school, is she being funding by the NHS?

(in fact the criteria where full time students are excluded from this seems downright unfair!)

If this is true then it doesn't matter if your wife is employed or not, she is still a full time student and there is no way around this.

BigAunty

I think a PAYE person employing their wife in some kind of pseudo fake capacity in order to qualify for discounted child care isn't going to work, there is no legitimate option that I'm aware of.

Citing MPs is comparing apples with pears - they get perks and subsidies that aren't enjoyed by both regular employees and the self employed, plus their families are actually performing the role in return for wages, not child care costs paid by the state.

On the benefits forum, we see posters ask if their children's grandmother could be the child care provider in order to qualify and could they pay their parents to mind their kids from the state purse in some way (answer is no, I believe, unless they are a registered child minder).

You could ask for ideas on the employment or benefits forum but your main option seems to be to reduce your living expenses or increase your salary. To do a more frugal budget, download the MSE budget planner and work your way through the MSE website to identify the cheapest tariffs for insurance, energy, telecoms, etc, cheapest food shopping, thrifty recipes etc.

Mrs_Imp

Brighton_belle wrote: »

Honestly, she won't have time on top of being a medical student and having two children.

Then how on earth is she going to manage to be 'employed' by the OP? They can take very little time if you hand the catalogues out to friends and family, and at groups you go to.

Carl31

You can employ your wife, but it makes no sense from an income tax perspective. You will be paying her out of your net income, which she will then be taxed on again, unless you pay a nominal amount under the personal allowances.

it would only really be viable if you were self employed

Edit. I see you are looking at the child voucher aspect, again this makes no sense as you are paying her from your own already taxed income

Brighton_belle

Mrs_Imp wrote: »

Then how on earth is she going to manage to be 'employed' by the OP? They can take very little time if you hand the catalogues out to friends and family, and at groups you go to.

Oh I know. I assumed the OP was talking about employing his wife to do what she already does - run the home/childcare etc.

jackyann

This is rotten OP, but no real way around it. Medical students work the hardest of any students I have ever know, and most have no time at all for paid work (some do drug trials and some do low level occasional NHS work).
That your family is running a full time job, 2 kids and a more-than-full-time student is a credit to you all.

I think your wife should talk to her student advisors and see if they can come up with anything. Medical schools often have odd bursaries from times gone by that may be able to help.

I wish you luck

LandyAndy

onlyroz wrote: »

If you were self employed then I think you could "employ" your wife to help with things like accounts and book-keeping etc.

fivetide wrote: »

. Don't most MPs employ their wife/a.n. other family member to do 'admin' ?

MPs are self employed.

JimmyTheWig

Carl31 wrote: »

You can employ your wife, but it makes no sense from an income tax perspective. You will be paying her out of your net income, which she will then be taxed on again, unless you pay a nominal amount under the personal allowances.

it would only really be viable if you were self employed

Edit. I see you are looking at the child voucher aspect, again this makes no sense as you are paying her from your own already taxed income

I think you've still missed the point, Carl.
If the OP's wife was working and earning £50 a week then they would be entitled to help with childcare costs.
So they would be up on the deal even if the OP paid his wife £50 a week from his already taxed income as she won't pay tax due to low income and they'd then get the childcare help.

antrobus

LandyAndy wrote: »

MPs are self employed.

From a FOI request;

Members of Parliament are office-holders in relation to their position as an MP and are therefore taxed as employed persons.

https://www.whatdotheyknow.com/request/tax_allowances_granted_for_the_u

sroughley

JimmyTheWig wrote: »

I think you've still missed the point, Carl.
If the OP's wife was working and earning £50 a week then they would be entitled to help with childcare costs.
So they would be up on the deal even if the OP paid his wife £50 a week from his already taxed income as she won't pay tax due to low income and they'd then get the childcare help.

That is essentially what I am looking at. I am not looking to do anything unethical as I have always worked hard and paid my taxes and my wife is working extremely hard for a career that will pay huge amounts of tax throughout her life and it seems we have been short-changed by a tax policy that has been poorly thought out. Obviously I don't want to do anything wrong or illegal here but any help is worth going for.


I guess another option would for my wife to register as self employed and I could pay her but I feel this could be perceived as dodgy by HMRC. Its frustrating as I know that if I were a contractor (even in the same industry) that it would be perfectly reasonable for me to pay less tax on my earnings while employing a partner as business admin for tax efficiency and pay tax free childcare but if I am employed through PAYE then it seems like it starts to look like evasion. The tax system is such a freakin mess! No sense to it at all.


Just want to take this chance to thank you all for all your input! It is very much appreciated.


Stephen