[windows_chepstow]

I'm declared as self-employed.  Wor Lass is not.

In my books (read between the lines if you like) she's down as being paid £200 a month, ie £2400 per year.

I know this isn't even using half of her tax allowance.

And when I send off my tax-return, she's down as just another expense; such as motor oil or dirty scrims.

Anyway, I'm sure I'm not 'employing' her correctly.  I've attempted to phone the Self-Employed Tax Help Desk for advice but have you tried getting an answer?  It's not easy; engaged non-stop.

Do any of you employ your spouse and if so how do you go about it?

Or would it be better to go as a partnership? 

What's the best way to utilize her tax allowance?

Should I be asking this to an accountant?

[D.Salkeld_Ltd]

Tosh Mate,

Go see a GOOD accountant. Ok they'll charge you 300 - 400 quid a year but they'll answer all these questions and probably show you other ways to save TAX.
All you have to do is keep a regular record of your takings and expences.  The accountant will advise you what you can and can't put down as an expence.
You've probably got an accountant as one of your customers!!
Mine is one of my customers.  we just about break even!!!

David Salkeld

[AuRavelling79]

Hi Tosh - my wife does my books and although she is now employed elsewhere all her tax allowance was used up  and she was self-employed in her own right and would thus charge me up to her tax allowance for doing the books, banking cheques delivering leaflets etc etc.

Check it out by phoning the Inland Revenue - we've found them very helpful.

[Moderator David@stives]

I put my wife down for £100 a week and pay a ni contribution for her and she pays a small amount.

The reason being if she goes sick she can claim sick pay and maternity benefit if needed .
Also her contributions qualify towards her pension years.

And it keeps my tax bill down .
You have to prove you actually hand over the cash if you do it your way as an expense

[windows_chepstow]

David,

Also her contributions qualify towards her pension years.

If your missis has school-age children she'll receive child benifit, and if she receives child benifit, her NI contributions are paid automatically; so she would not lose out on a state pension.

So is your wife an employee or partner?

[Moderator David@stives]

Employee

[Moderator David@stives]

Its worth it in  case of being sick

[Roy Harding]

Dont you as the employer have to pay the sick pay?

Roy

[Moderator David@stives]

No the state pays it

[sair]

put my wife as partner so this year she has her own NI,and a tax bill i ve done it to get out of the higher tax bracket as it hurts.should save be 5000. of my tax bill we shall see

the accountant is good and will still only charge the same as last year when she just took up to personal allowance , best money i spend through the year.

i would say utilise her tax allowance and go partnership. but what do i know im not an accountant 

[Roy Harding]

Hi Dave

The bussiness link here does say the employer payes sick pay.

http://www.businesslink.gov.uk/bdotg/action/detail?r.l3=1074407226&r.l2=1073876962&r.l1=1073858787&r.s=sc&type=RESOURCES&itemId=1074411377

I know the employer used to pay it then claim it back, but I dont think it is like that any more.

Roy

[dai]

My Wife is also my business partner, pays her own stamp and tax. I did this to get round paying employee liability insurance. This is a legal requirement if you employ. I told the accountant that we split the income that was left after expenses and household bills. She was happy with this. We also have the benefit of two personel allowances. DAI

[Moderator David@stives]

Yes you pay it then deduct from the contributions you pay every month ,then claim the rest back of the government.

[JohnL]

 Tosh quote

. . . . ''she's down as just another expense; such as motor oil or dirty scrims . . ''

            

I do hope the lass is not paid to read this lot Tosh!     

JohnL