[Plankton]

Long and short is the wife does the admin and should have set herself up as a partner. What is the process for me to sort this out as it probably should have been done in April for the new tax year. I've turned a blind eye to it as it's "not my department"! But need to get the finger out and sort it.

[Smudger]

Your accountant will help - I did it several years back it's just a couple of forms from there we went ltd that was more involved and of course cost more
Darran

[Plankton]

Thanks for the reply Smudger but the wife will be processing the accounting. So technically it's her department...

[Plankton]

Started the process online so it takes up to 35 days for them to get back and then you can add a partner once you have your new utr code.

[Ooooooog]

I did it for a year to share the tax. You’ll need to buy some software (andica?) to file your returns online. It was a bit of a ball ache but easier if you’re using an accountant perhaps.
Good luck!

[Plankton]

These things should be easy enough but yes a ball ache is perhaps what it will be unless I deal with it from start to finish.... Que the domestic arguments!

[Smudger]

Why the change ?

[David Beecroft]

I set it up online quite easily without the help of an accountant and I use Andica software to submit the returns each year. You can also back date the partnership setup date. It will mean you can use your wife’s full allowance to save tax depending on the partnership % split.

[The Jester of Wibbly]

Task your wife to call HMRC and fix. It's her department. 

[Plankton]

Why the change ?

So she's not an employee, I know you can offset your spouses tax free allowance which would have been easier....

[jonboywalton75]

I set it up online quite easily without the help of an accountant and I use Andica software to submit the returns each year. You can also back date the partnership setup date. It will mean you can use your wife’s full allowance to save tax depending on the partnership % split.

My wife just does a little admin for the business at present so I end up paying a fair amount of tax even though i use the allowable bit of her allowance to save some ££££'s
Would setting up a partnership be worth it for me?
Tax savings etc.

[TomCrowther]

If your wife is not earning elsewhere it makes sense to use her tax free allowance as well as yours, so you can both ear £11k odd before paying tax. You should really get proper advice from an accountant as you will be missing out on other things such as Ni contributions to ensure she gets full state pension etc.
I can never understand why some guys don't see the benefit in paying a decent accountant to do the accounts instead of a book keeper type service who will never come close to the same service. My guy is £120 a month {small business} but he has saved me £1000's.

[jonboywalton75]

If your wife is not earning elsewhere it makes sense to use her tax free allowance as well as yours, so you can both ear £11k odd before paying tax. You should really get proper advice from an accountant as you will be missing out on other things such as Ni contributions to ensure she gets full state pension etc.
I can never understand why some guys don't see the benefit in paying a decent accountant to do the accounts instead of a book keeper type service who will never come close to the same service. My guy is £120 a month {small business} but he has saved me £1000's.

Sounds like good advice Tom.
I'll have to look into it.
The thing is though, as a sole trader and my wife not being physically able to work with me, i wonder how I can justify her earnings beyond the small amount i pay her now.

[Shrek]

It’s not just admin  mate , she’s in charge of txting all customers, answering all enquiries , purifying water , changing filters , washing cloths etc etc . There’s a lot to do behind the scenes! Pay her the full 12850!!

[Smudger]

Its not about justifying - minimum wage is what £8.75 p/h now you employing someone for 11k a year is not unreasonable or unusual - she does (as mentioned) paperwork - is on call as receptionist for the phone - cleans the office - processes payments - I could go on...... (hmmmm perhaps you should be paying her 20k a year  )

Darran

[Spruce]

Its not about justifying - minimum wage is what £8.75 p/h now you employing someone for 11k a year is not unreasonable or unusual - she does (as mentioned) paperwork - is on call as receptionist for the phone - cleans the office - processes payments - I could go on...... (hmmmm perhaps you should be paying her 20k a year  )

Darran

What ever you do don't let her read this.

[TomCrowther]

It’s not just admin  mate , she’s in charge of txting all customers, answering all enquiries , purifying water , changing filters , washing cloths etc etc . There’s a lot to do behind the scenes! Pay her the full 12850!!

what he said.