Can I employ my wife?

sroughley

Maggie.Moo wrote: »

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?



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.

Thanks for this. My wife applied last year and was declined despite meeting all that criteria and IIRC it was due to household income. But you are right, there is no income contingency stipulated there so I wonder if it has changed since. I'll make sure to look into it again

sroughley

InsideInsurance wrote: »

If her life choices means she doesnt have enough time/ energy/ desire to work at this point then she will be entitled to the benefits that a full time student gets and not those of a working person.

At least when she is on consultant/ GP money these types of issues wont exist any more by a long way

Yep, completely understand and agree with your points there but there is no harm in trying to find help. I suppose we are kind of at panic stations right now as all of our savings have been eaten up by paying for the course and rising childcare costs and the course still has another two years to run so we're feeling very exposed and looking for any help we can get.

JimmyTheWig

sroughley wrote: »

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.

I think it depends on what your wife is registering as self-employed as, and what it is that you are paying her for.
E.g. I think it would be reasonable to pay her to file your tax return for you. But I don't see that justifying £50 a week. I don't think it would be reasonable for you to pay her to do the cooking, washing, cleaning the windows, etc as they are tasks that would be done anyway.
In other words, I don't know that there is much that you could find that would make it sound justified.

Though it is always worth checking the rules to make sure there is nothing that you've missed...

InsideInsurance

sroughley wrote: »

I suppose we are kind of at panic stations right now as all of our savings have been eaten up by paying for the course and rising childcare costs and the course still has another two years to run so we're feeling very exposed and looking for any help we can get.

Presumably you knew the fees and if you would qualify for the Student Loans/ NHS Bursary prior to making the decision to go to university though?

I am all for people furthering themselves, doing a change of career etc but on the basis she is paying for herself it suggests she's already done an undergraduate degree hence having to fund the second one herself.

Its a big decision that shouldnt be taken lightly but those who want to do it but realise they cannot afford to shouldnt really be asked to fund those that decide to go ahead anyway despite not being able to fund it.

Having been a med student myself (dropped out) I wont buy any claims its an altruistic career path for 99% of those on the course.

sroughley

InsideInsurance wrote: »

Presumably you knew the fees and if you would qualify for the Student Loans/ NHS Bursary prior to making the decision to go to university though?

I am all for people furthering themselves, doing a change of career etc but on the basis she is paying for herself it suggests she's already done an undergraduate degree hence having to fund the second one herself.

Its a big decision that shouldnt be taken lightly but those who want to do it but realise they cannot afford to shouldnt really be asked to fund those that decide to go ahead anyway despite not being able to fund it.

Having been a med student myself (dropped out) I wont buy any claims its an altruistic career path for 99% of those on the course.

The purpose of your post seems to be no more than sanctimoniousness.

southoftheriver

InsideInsurance wrote: »

Having been a med student myself (dropped out) I wont buy any claims its an altruistic career path for 99% of those on the course.

I don't believe in altruism generally so I'd agree but what is the point of your post? It seems you have a bugbear against medical schools/medical careers based on your own experiences?

OP there are usually people at universities who can give advice about finances and they may be able to offer advice about things you are eligible for but don't know about. Good luck.

BigAunty

sroughley wrote: »

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.

Definitely dodgy. It doesn't remotely fall within their quite explicit guidance.

https://www.gov.uk/employment-status-indicator

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/working/work-out-emp-self-emp.htm

Thing is, you cast your eye covetously over the self employed arrangements between husband and wife but don't see the downsides of true self employed - no holiday pay, no sick pay, fluctuating income, having to attract and retain clients - because of your obsession with getting free child care that you appear not to be entitled to.

Also, I can't see how a self-employed partnership will suddenly gift you the subsidised child care that you crave unless I am misunderstanding. Yes, you can depress your SE income legitimately for tax purposes by paying a spouse but it is joint household income that is used to assess means tested services and benefits so I can't understand why this arrangement would work?

The only other avenue I can think that might be worth exploring is the impact of your paying extra pension income, if this is a legitimate way to depress your income to qualify for child care grants. That's what some couples do to retain their child benefit, for example. But I don't know if it is the net or gross figure that would be used for your child care calculation, plus you will receive a smaller income by putting more in your pension and you say you are already stretched.

From my browsing of the benefit forum, many couples try to depress their employment income by working just 24 hours between them, with one parent working at least 16 of these. They do this to qualify for working tax credits (24 hour threshold) and to maximise child tax credits, housing benefit and council tax benefit. Those on a low income don't see much return from the second parent in employment, or the first adult working full time as it vanishes through tax, travel and child care expenses and reduces their benefits.

A household in part time low waged employment with at least a couple of kids in some circumstances net almost the same income or just slightly (after their housing costs have been factored in) as another household earning 2/3/4 times the sum.

It probably works best for those on National Minimum Wage and who are tenants. However, you can play around with the Turn2us online benefit calculator to see if you are better off by working less and earning less, as perversely, in some circumstances households are better off if they sit on their sofa more...

sroughley

BigAunty wrote: »

Definitely dodgy. It doesn't remotely fall within their quite explicit guidance.

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Thank you. That is very helpful and is just what I was after

BigAunty wrote: »

Thing is, you cast your eye covetously over the self employed arrangements between husband and wife but don't see the downsides of true self employed - no holiday pay, no sick pay, fluctuating income, having to attract and retain clients - because of your obsession with getting free child care that you appear not to be entitled to.

Crikey, what is it with the assumptions and the preaching here?!


I know all about self-employment as I was self employed until early last year. Having worked as a contractor for several years I know all about how it is perfectly legal to make HUGE savings through tax efficiencies to the point that I would say that current tax legislation actually punishes PAYE workers. This is all something I was aware of when I made the move to be solely an employee and I am not complaining about that. All I was after is some advice on any potential tax efficiencies as PAYE worker in regards to childcare in light of the govts latest announcement that childcare vouchers which I have been relying on are being axed in favour of Tax Free childcare which I do not qualify for even though I pay my taxes and require full time childcare. That is all.


I'll remember to fully equip my judgement shields if I return here.


Thank you for your help.


Stephen