Spouse on the books

[allaboutthebenjis]

I've had my partner (unmarried) on at c. £8k salary for Books, Sourcing clients etc for 4 years now. Just had a full HMRC inspection and they found no issues. In saying that it took them about 6 months, I had to keep chasing them, guy moved depts. etc etc

[northernladuk]

I've had my partner (unmarried) on at c. £8k salary for Books, Sourcing clients etc for 4 years now. Just had a full HMRC inspection and they found no issues. In saying that it took them about 6 months, I had to keep chasing them, guy moved depts. etc etc

8k for doing the books and sourcing clients for most of us just a piss take IMO. Maybe you work slightly differently to us bum on seat guys though.

The fact the figure just happens to be around to tax point speaks volumes. Funny it just happens to be that value and not a higher or lower number that reflects the actual work and pay p/h done.

[allaboutthebenjis]

8k for doing the books and sourcing clients for most of us just a piss take IMO. Maybe you work slightly differently to us bum on seat guys though.

The fact the figure just happens to be around to tax point speaks volumes. Funny it just happens to be that value and not a higher or lower number that reflects the actual work and pay p/h done.

Don't disagree, just pointing out to OP that was not challenged by HMRC

[ASB]

Don't disagree, just pointing out to OP that was not challenged by HMRC

There is a lot of talk of remuneration needs to be commensurate with duties. There are a number of aspects to that.

It may well be the case that the accounts take an hour a week. Could you get a part time to take the role in practice? Probably not.

Also if the other party is an office holder i.e. secretary or director then that confers legal responsibilities. Secretary needs to sign accounts etc at a minimum. Time taken 2 minutes. So obviously only tiny pay.

But what about the responsibility that goes with the duties. They also need to be compensated. So it is not just about time spent on the job, it's about an overall picture.

In practical terms there is plenty of suggestions that HMRC could potentially disallow, but I can't find any recent cases or postings where it appears they actually have disallowed.

[Jessica@WhiteFieldTax]

In practical terms there is plenty of suggestions that HMRC could potentially disallow, but I can't find any recent cases or postings where it appears they actually have disallowed.

Knocking on 30 years in practice, I've only ever seen it challenged once.

[northernladuk]

Knocking on 30 years in practice, I've only ever seen it challenged once.

Is that enough justification for you to say it's OK to do this?

[Alan @ BroomeAffinity]

Knocking on 30 years in practice, I've only ever seen it challenged once.

Sounds a bit like "it's not wrong if you don't get caught."

[JB3000]

Is that enough justification for you to say it's OK to do this?

Good point

+1

[JB3000]

Sounds a bit like "it's not wrong if you don't get caught."

Took the words out of my mouth

+1

[Jessica@WhiteFieldTax]

Is that enough justification for you to say it's OK to do this?

Enough justification for my firm to advise clients that they can take an educated decision on family and business finances without worrying about Internet scaremongering.