Wife cannot work - Mental Health Issues

sammyjammy

Why not draw more money from the business yourself and give your wife the same money and call it housekeeping if it concerns her. Do you keep your finances separate?

UKSBD

Poppie68 wrote: »

Do you have an accountant? Maybe he can put your wife's mind at rest by explaining the legitimacy of the situation?

She doesn't like my accountant either

It really is that tricky at times.

Unless you have lived with someone like this for a time you wouldn't realise how perfectly rational and obvious things aren't always rational and obvious

UKSBD

sammyjammy wrote: »

Why not draw more money from the business yourself and give your wife the same money and call it housekeeping if it concerns her. Do you keep your finances separate?

I appreciate that sounds a simple solution but;


1. She would lose her NIC contributions.


2. Losing £4k of our income would hit us hard.

thorsoak

OK - how would she respond to reassurance from HMRC?

Put the question to them "Can the company pay a non-working director a salary?"

UKSBD

thorsoak wrote: »

OK - how would she respond to reassurance from HMRC?

Put the question to them "Can the company pay a non-working director a salary?"

She isn't a director.

Darksparkle

UKSBD wrote: »

She isn't a director.

Couldn't you make her a shareholder and pay her a dividend?

She'd lose the class 1 NIC but I think she could then pay voluntary class 3 NIC for her state pension?

Poppie68

If she is still active to some degree then she can get paid..

UKSBD

Darksparkle wrote: »

Couldn't you make her a shareholder and pay her a dividend?

She'd lose the class 1 NIC but I think she could then pay voluntary class 3 NIC for her state pension?

Dividends come after corporation tax not before.


I've always assumed it is important she keeps her NIC contributions up, and it also keeps her in the system.

UKSBD

Poppie68 wrote: »

If she is still active to some degree then she can get paid..

Thanks, that is what I am hoping and what I expect we will carry on doing unless I hear any different.

fishybusiness

No, that's sole traders. Sole traders complete the self employed section of a tax return.

If a director of a ltd company you declare salary, benefits and dividends on an SA return. The company then does CT returns. Otherwise the individual would pay income tax on the company profits.

Nope, there is no requirement for a director to be on PAYE.

Company can invoice director for services and said invoices pay can be returned on SA.

Director needs no contract of employment.

CT is still within company and makes so difference to SA, which is normal.