[BUFTON]

ime thinking about having my wife help out 1 day a week, purely to help keep some extra money in the family.i.e. to save some tax. Whats the best way to go about it for tax purposes? Employee? business partner?register s/employed? what about N.Ins stamp? etc; etc; Any guidance gratefully received : :

[AuRavelling79]

Speaking for myself - my wife does my books and is self employed to use her tax allowances. She pays basic rate class 2 contributions which are currently £28.60 per quarter.

(BTW she is also employed part time by a school and pays PAYE and NI -deducted from her salary. She just fills in a tax return detailing her self employed earnings.)

You can talk to the Inland Revenue AKA HM Customs and Excise directly for tax advice - they are very helpful.

[Count Phil]

If she doesn't have another job, just make her your partner and pay her half. As a partner she doesn't actually have to work, she owns half and takes half. Then you get double the tax free allowance (about 5k) so that makes about 10k of your earnings tax free!

My wife actually does work with me, but she would still be my partner if she didn't. You fill in one partnership return, and a personal return each, but the're easy. No one works for anyone, you're both equal, no one has to pay employee insurance or employee NI contributions. You just take half profit each.

[SherwoodCleaningSe]

My wife works wife me.  We work it as a partnership with a 50 50 share of all the profits.  This means you use up both tax allowances and also both 10% rate allowance before you start paying tax at 22%.  This means you can earn 10450 profit betwwen the two of you before you start paying tax for this tax year.  And then another 4460 at 10%

You can split the share of profits each year to what you want so one year 40 60 another year 55 45.  So if you want to make use of the personal allowance but avoid paying class 4 national stamp on the Mrs you can by adjusting the profit share.

It's very easy to register as a partnership just pop along and the tax office will help.

Simon Sherwood.

[BUFTON]

thanks all, very helpfull. Will be down tax office on next raiy day to sort it for next tax year starting in april.