I work for my s/trader husband, how do i account for my wages?? tax implications

Lifeisbutadream

Cook_County wrote: »

If you follow lifeisbutadream's advice you may well find yourself hit by income shifting rules from next year.

You would also want to have a partnership agreement & of course let your insurer's know.

With your current arrangement I am worried that there is no contract of employment, so the wage could be disallowed.

You are also in breach of minimum wage law & failing to collect the S2P.

Start by finding out what your insurers would permit.

Why do you say that?

That is what we do and have done since starting the business.

Lifeisbutadream

Just ignore the above, Jimmos post says it all.

jcorbygas

I also do all the clerical work for my husband who is self-employed. I claim a wage of £100 per week for myself by writing a business cheque out each week payable to myself and then paying it in to an account.
Our accountant (chartered) told us to do that, and as long as I keep my wages below the earnings level for tax that there is nothing else I need to do.
I actually do earn the money and could prove to the taxman that I do.

Lifeisbutadream

TBH it makes me laugh when 'the taxman' questions a wife working for a husband.

Even if we didnt have any contractors/employees, VAT would still need paying, and it is laughable as to what would happen if my OH was left in charge of advertising, accounts, marketing, estimating and buying materials! he is a very good joiner, but the business would fall to pieces without me (modest as that might sound!) and I am sure it is the same with most husband/wife businesses!

mrsbez_2

Thanks everyone this has been really helpful. And a BIG thank you to Jimmo, that was very helpful and extremely useful.