Wife cannot work - Mental Health Issues

macca1974

It sounds a difficult situation. Just with regard to your thoughts relating to not being able to sack / make her redundant, the only time that this could possibly be an issue would be if your wife decided to take you to court for wrongful dismissal I would have thought. If she isn't going to do this and you agree between you what is the best way forward then there really isn't anyone else that needs to be considered.

With regard to having a duty to the company, you are presumably the main shareholder and your wife the other one. So again, your duty is to yourselves as co-shareholders, so you can do anything you like regarding keeping her on or not as long as you are both in agreement.

Employing a spouse and paying £163 per week (so just below what you would pay NI on but high enough for her pension etc to grow) is again perfectly acceptable providing that she can demonstrate that she is doing the work. When my accountant explained this to me, he suggested £15 ph was an acceptable level of pay and that this would mean only 11 hours per week would be necessary. So a couple of hours a day. Could she do this on tasks that her OCD allowed her to do.

Also, providing that the company is earning enough money, then just as a thought (although I'd check with an accountant) why not provide her with a generous sick pay policy. If she is genuinely to ill to work then put a document together that says that she is on full pay for 18 months whilst off sick. I'm not sure if this would work, but many companies provide this type of thing and again its completely down to the directors to decide how the companies money should be spent.

Finally (and apologies for the long post), if you are concerned about how the family would look after themselves in the event of your death / illness, then look into life insurance / critical illness cover / income protection and you can make sure that they will be taken care of.

UKSBD

GirlFromMars wrote: »

Firstly, hopefully you have life insurance. I'm assuming the business is of a nature that it would not continue to support your wife & family if you were unable to work?

Secondly, sorting out your wife's benefits now is important, as you say she's been paying National Insurance contributions, so she should be entitled to contributions based benefits now, but if you wait too long to claim she would not be entitled if her NI contributions have run out.

As people have said, she is entitled to SSP, so maybe moving towards that with a view to claiming ESA-Conts once that runs out. A first step would be getting her to her GP for a fit note, and advice about how to improve her health so that maybe she can return to work at some point.

Not everyone needs a Face to Face assessment for ESA, just make sure she has enough supporting medical evidence & that her evidence meets the descriptors.

Yes, I have life assurance, money is not so much the issue as just ensuring she is part of the system.


One of the other reasons for employing her (in the past and going forward) is to make sure her NIC contibutions are made.


Trust me, getting her to a GP (or home visit) isn't as simple as it sounds


She as been seeing a CPN on and off for about 20 years, but for the past 3 or 4 years has just dropped of everyone's radar and doesn't want me to try to get her help.


Things are OK at moment, but I do worry about the future.

UKSBD

Darksparkle wrote: »

My employer can still choose to dismiss me during sick leave depending on the circumstances or they can choose to continue to employee me. They have processes in place for that too. It's all part of being an employer.

The difference is, your not related to your employer (I assume)


It have to be sure that what I do isn't based on her being my wife but just based on her being a normal employee.


I'm pretty sure that what I am doing is OK, it's more a case of reassuring her.

UKSBD

macca1974 wrote: »

Employing a spouse and paying £163 per week (so just below what you would pay NI on but high enough for her pension etc to grow) is again perfectly acceptable providing that she can demonstrate that she is doing the work.

Thank you for the full reply.


Regarding the bit above, that's the crux of the question really.


I believe she is doing enough to justify the wage, but she worries that she isn't.

antrobus

UKSBD wrote: »

The difference is, your not related to your employer (I assume)

It have to be sure that what I do isn't based on her being my wife but just based on her being a normal employee.

I'm pretty sure that what I am doing is OK, it's more a case of reassuring her.

It is possible that if HMRC knew that you were paying your wife for doing nothing, then they would disallow the cost on the grounds that it was not a business expense.

See BIM47105
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47105.htm

Darksparkle

UKSBD wrote: »

The difference is, your not related to your employer (I assume)


It have to be sure that what I do isn't based on her being my wife but just based on her being a normal employee.

Exactly! So if she was a normal employee and was unfit for work, you as her employer, would be required to pay her at least SSP providing she had a fit note. You, as her employer, could also choose to pay full sick pay and there is nothing wrong with doing so.

Darksparkle

UKSBD wrote: »

Thank you for the full reply.


Regarding the bit above, that's the crux of the question really.


I believe she is doing enough to justify the wage, but she worries that she isn't.

That isn't what you said in your OP. You said she was doing nothing to justify the wage.

Guest101

UKSBD wrote: »

Changing your tune a bit.
Earlier you said they could be paid to do nothing.

You can.


1: A company may wish to retain someone, even though there is no work at present for them to do
2: A company may wish to stop a rival getting access to their skills
3: For whatever reason a person has negotiated such a contract, perhaps as part of a sale of the company


There are plenty of reasons why someone would be paid to do nothing.

GirlFromMars_2

UKSBD wrote: »

Yes, I have life assurance, money is not so much the issue as just ensuring she is part of the system.


One of the other reasons for employing her (in the past and going forward) is to make sure her NIC contibutions are made.


Trust me, getting her to a GP (or home visit) isn't as simple as it sounds


She as been seeing a CPN on and off for about 20 years, but for the past 3 or 4 years has just dropped of everyone's radar and doesn't want me to try to get her help.


Things are OK at moment, but I do worry about the future.

Trust me I understand mental health & anxiety problems, as I'm sure do many people on the forum.

I would say your first step should be worrying about getting her to see a GP, and engaging with society again.

Luckily as you don't have money problems you don't need to engage with the benefits system yet, although please spare a thought for the rest of us with anxiety problems who are not that lucky!

You say she is doing some work, and you (and your shareholders) are happy to continue to employ her, so you can just continue with that.

Ideally your wife needs a life outside your home/business. I'm not saying it will be easy, but I think you need to help her find some way of engaging with something outside of your family.

I started with visits to the local shops, and silly as it may sound, buying fresh flowers for myself & my family helped me begin to feel like a normal member of society. I am extremely lucky now that I have a number of things in my life that make me feel positive & help me engage with the outside world, for me that includes my garden, pets & volunteering. Even facebook was impossible to engage with before I felt I had something positive to share with others.

Good luck with the future. And if possible make sure your wife continues her NI contributions!

fishybusiness

Directors go through PAYE too on salary and benefits.

Or they can be self employed.