Hourly rate for WAGS

[zazou]

I'm passing admin work and some system testing to my girlfriend and was curious about what people in similar situation were paying their partners?

[Maslins]

I'm passing admin work and some system testing to my girlfriend and was curious about what people in similar situation were paying their partners?

I'd imagine an hourly rate that when multiplied by the number of hours they did coincidentally always came out at £671/883 a month.

More seriously, what do you consider a fair hourly rate for what she does? £10/hour? There's no "right" answer to that question.

[vwdan]

If you're serious about playing nicely with the rules, I'd probably just get onto some of the freelance type websites and see what UK based (Important!) people with a good reputation charge. Print off some proof for later, negotiate with your other half and jobs a good un.

She doesn't have to be the cheapest or fastest, but as long as it's in the realms of possibility / reasonableness then HMRC are going to be incredibly hard pressed to fight it.

Bear in mind that if she's earning above the threshold elsewhere then it's probably not worth the hassle.

[ASB]

Bear in mind that if she's earning above the threshold elsewhere then it's probably not worth the hassle.

Absolutely. If the tax band is used elsewhere there is no potential tax saving. But.....

It can be a useful way of avoiding NI on that portion of a second income potentially reducing higher rate tax for the person the income is being "diverted" from.

Though if the diverter is not a higher rate taxpayer it is utterly pointless since the money would only suffer CT otherwise and then paying it is as dividend doesn't attract NI.

So, in summary, only worthwhile if the diverter is a higher rate payer where the recipient has income in excessof their tax allowance and then only to a limit of the NI threshold.

[TheFaQQer]

Bear in mind that if she's earning above the threshold elsewhere then it's probably not worth the hassle.

It can make a difference if you are shutting down and claiming ER.

[zazou]

Thanks guys.

In my situation it's about fair pay for the effort rather than tax efficiency or minimum wages.

[PurpleGorilla]

I'm passing admin work and some system testing to my girlfriend and was curious about what people in similar situation were paying their partners?

Sounds like a 12k pay sort of job - so maybe works out at:

12000 / 1650 = £7.27 ph

Could be a bit more if there is a bit more responsibility...

[MarillionFan]

I'd imagine an hourly rate that when multiplied by the number of hours they did coincidentally always came out at £671/883 a month.

More seriously, what do you consider a fair hourly rate for what she does? £10/hour? There's no "right" answer to that question.

WHS.

[WordIsBond]

Thanks guys.

In my situation it's about fair pay for the effort rather than tax efficiency or minimum wages.

In which case, the thread shouldn't be titled "Hourly rate for WAGS." From what you said, it should be "Hourly rate for admin and some system testing." Doesn't matter who does it, right, fair pay for the effort?

So figure out what you'd pay someone else. Cut it by 10% since she gets to work at home, so she doesn't have to commute. Increase it by 10% because having a helper doing some system testing is a plus for IR35, one more thing to tell HMRC if they come bugging you, that's worth something.

Please note that I cut by 10% before increasing by 10%, leaving a net rate of 99%. If she's good to you, you could increase by 10% BEFORE decreasing by 10% instead, which would also leave a net rate of 99%.

If she's really, really good to you, business and pleasure don't mix, you don't want to end up firing her if she's bad at the stupid job. Hire someone else and just give her whatever money she needs, and consider yourself very fortunate.