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Maternity Allowance and starting new job
jaydeeuk1
Posts: 7,714 Forumite
in Cutting tax
My wife currently receives £400 or so each month in maternity allowance until June 2015. I'm a director and would like to employ her to use her tax allowance.
I've read that the MA is tax free - does this mean in theory she would still get the whole £10600 still? Also I presume if I was to employ her from april she'd lose the MA, so if I employed her from july (month 3) could I pay her £1177 tax free (assuming MA not counted) or £1044 a month if I assume 3 x £400 MA had been paid? Do she just need a change in tax code or something? I'm not clued up on this and want a bit of an idea before I instruct my accountant (who's a bit like the one from Life's too Short)
I've read that the MA is tax free - does this mean in theory she would still get the whole £10600 still? Also I presume if I was to employ her from april she'd lose the MA, so if I employed her from july (month 3) could I pay her £1177 tax free (assuming MA not counted) or £1044 a month if I assume 3 x £400 MA had been paid? Do she just need a change in tax code or something? I'm not clued up on this and want a bit of an idea before I instruct my accountant (who's a bit like the one from Life's too Short)
0
Comments
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What is her current tax code? Presuming 1060L she can receive £883 tax free per month, so as at the end of July as long as shes not received more than £3,532 she wont be liable for tax0
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presume it will be 1060l, she left her part time teaching position 30th april 2014.0
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