Tax implications of joint bank accounts

jittersandbang

Tax implications of joint bank accounts.  discussion wanted please.

Grumpy_chap

You don't pay tax on his income.  Any interest earned is treated as half each for income distribution.

I assume you have separate accounts for personal and business.

Jeremy535897

Your husband now has to declare half the bank interest, and you are now assessed on half of it. If you are basic rate taxpayers you can each earn £1,000 savings interest without paying any tax on it. Tax on his business profits is nothing to do with you.

Jeremy535897

Then you have no tax liability, unless the bank interest is massive.

penners324

He really needs a separate business account. There's a lot of posts of banks shutting personal accounts due to using them as business accounts. Which is against the t&c

Keep_pedalling

jittersandbang said:

penners324 said:

He really needs a separate business account. There's a lot of posts of banks shutting personal accounts due to using them as business accounts. Which is against the t&c

If they don't want his weekly wage paid into his account then he'll cross that bridge when it comes to it.

Self employed people do not have a weekly wage and having you bank account closed at short notice is going to cause you both quite a bit of pain. Much easier just to open a business account.

jittersandbang

Seems like my original question has been covered.  Thanks to all who contributed.

penners324

The business are paying his invoices not paying a wage.