Sole trader paying wife

sultan123

Grumpy_chap said:

Is the OP definitely sole-trader and not Ltd Co or via Umbrella Company?  
A couple of months ago the OP was assessing the pros and cons of alternative PAYE opportunities.
If the OP is not a sole-trader, it will make a difference to the applicable rules for employing a spouse.

Have PAYE job but also self-employed as sole trader. Guessing this doesn't change rules for employing spouse?

sultan123

[Deleted User] said:

Here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/963434/Starter-checklist_English_2021_2022.pdf

Thanks guessing i dont submit this here as such?

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Do they need to sign a P46

The P46 was abolished nearly 10 years, replaced by the starter checklist.

You should get her to complete one however if she signe statement A and you are paying her less than £120 and you have no other employees you won't need to register for a PAYE scheme with HMRC.

I presume you realise that despite working she won't be accruing a qualifying year for State Pension.

Less than £120 a month or week?

Dazed_and_C0nfused

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Do they need to sign a P46

The P46 was abolished nearly 10 years, replaced by the starter checklist.

You should get her to complete one however if she signe statement A and you are paying her less than £120 and you have no other employees you won't need to register for a PAYE scheme with HMRC.

I presume you realise that despite working she won't be accruing a qualifying year for State Pension.

Sorry what is statememt A and where is this form?

https://www.gov.uk/government/publications/paye-starter-checklist

Thanks there is a online and printable one which is to be used. I am guessing I keep this for my own reference as opposed to send it off anywhere?

Yes, just keep a copy for your own records.

This is the link to check when a PAYE scheme is required.

https://www.gov.uk/register-employer/y

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Do they need to sign a P46

The P46 was abolished nearly 10 years, replaced by the starter checklist.

You should get her to complete one however if she signe statement A and you are paying her less than £120 and you have no other employees you won't need to register for a PAYE scheme with HMRC.

I presume you realise that despite working she won't be accruing a qualifying year for State Pension.

Sorry what is statememt A and where is this form?

https://www.gov.uk/government/publications/paye-starter-checklist

Thanks there is a online and printable one which is to be used. I am guessing I keep this for my own reference as opposed to send it off anywhere?

Yes, just keep a copy for your own records.

This is the link to check when a PAYE scheme is required.

https://www.gov.uk/register-employer/y

Thanks so max payment before registering seems to be 6.2k

Dazed_and_C0nfused

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Do they need to sign a P46

The P46 was abolished nearly 10 years, replaced by the starter checklist.

You should get her to complete one however if she signe statement A and you are paying her less than £120 and you have no other employees you won't need to register for a PAYE scheme with HMRC.

I presume you realise that despite working she won't be accruing a qualifying year for State Pension.

Sorry what is statememt A and where is this form?

https://www.gov.uk/government/publications/paye-starter-checklist

Thanks there is a online and printable one which is to be used. I am guessing I keep this for my own reference as opposed to send it off anywhere?

Yes, just keep a copy for your own records.

This is the link to check when a PAYE scheme is required.

https://www.gov.uk/register-employer/y

Thanks so max payment before registering seems to be 6.2k

It doesn't work quite like that, as soon as you pay more than £120/week you have to have a PAYE scheme even if the total for the tax year was less than £6.2k

The £120/week is changing to £123 from 6 April 2022.

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Do they need to sign a P46

The P46 was abolished nearly 10 years, replaced by the starter checklist.

You should get her to complete one however if she signe statement A and you are paying her less than £120 and you have no other employees you won't need to register for a PAYE scheme with HMRC.

I presume you realise that despite working she won't be accruing a qualifying year for State Pension.

Sorry what is statememt A and where is this form?

https://www.gov.uk/government/publications/paye-starter-checklist

Thanks there is a online and printable one which is to be used. I am guessing I keep this for my own reference as opposed to send it off anywhere?

Yes, just keep a copy for your own records.

This is the link to check when a PAYE scheme is required.

https://www.gov.uk/register-employer/y

Thanks so max payment before registering seems to be 6.2k

It doesn't work quite like that, as soon as you pay more than £120/week you have to have a PAYE scheme even if the total for the tax year was less than £6.2k

The £120/week is changing to £123 from 6 April 2022.

Ok but does it have to be weekly payment or can it be yearly payment

comeandgo

Have you looked at making your business a partnership?

Dazed_and_C0nfused

Or getting an accountant.

What employee wants to be paid annually!!

sultan123

Dazed_and_C0nfused said:

Or getting an accountant.

What employee wants to be paid annually!!

But theres nothing wrong in paying annually if I want surely