Income splitting with girlfriend (not spouse)

[northernladuk]

Thanks all for the comments. I've been using FreeAgent to date, but it seems like an accountant will be worth spending a bit of money on to get this sorted correctly?

Without a doubt.

I was going to use your referral code for Gorilla Accounting northernladuk, until you doubted my honesty

It's just the way I am. Most posts we get on here either miss key information or the OP is being liberal with the truth to get the answer they want so if I can cover the negative aspects the positive ones just roll in. 99% of wife working for the company post turn out she's doing a bit of filling according to the OP, and when pressed she isn't even doing that hence the default to them not doing anything which is usually right.

BTW I split my referrals so you get half. Lance will just take it all and blow it on hookers and coke. Just mention me and remind them we agreed half if you want.

Craig@Clarity is it fair to assume this is becoming a more common set up for your clients? Marriage seems to be on the decline and co-habiting on the rise. Wondering how many people have had a similar idea.

That is true, the problem is the law hasn't caught up to that fact yet, and probably won't for years, if ever, for some situations.

[LondonManc]

They all say they do.

Which is why employing her rather than a shareholding may be more useful.
At least then there would be a contract of employment, list of responsibilities and duties, annual appraisal, etc.
Set her up with a company email address, make her the main correspondent with the accountant, her responsibility to deal with company mail, maintain the company office, its stationery, etc.

This can include a bonus scheme and eye-watering pension contribution, as advised by an accountant.

[Lance]

BTW I split my referrals so you get half. Lance will just take it all and blow it on hookers and coke. Just mention me and remind them we agreed half if you want.

harsh.... have we met?

I would be willing to split but don't want to get in a bunfight over who gets referral fees.
The new Gorilla referral system is a pain anyway. But it is £200 right now rather than £100.

[eek]

Without a doubt.


It's just the way I am. Most posts we get on here either miss key information or the OP is being liberal with the truth to get the answer they want so if I can cover the negative aspects the positive ones just roll in. 99% of wife working for the company post turn out she's doing a bit of filling according to the OP, and when pressed she isn't even doing that hence the default to them not doing anything which is usually right.

BTW I split my referrals so you get half. Lance will just take it all and blow it on hookers and coke. Just mention me and remind them we agreed half if you want.

That is true, the problem is the law hasn't caught up to that fact yet, and probably won't for years, if ever, for some situations.

It won't remember tax law is entirely different to all other parts of the law and as shown by the Arctic case, HMRC don't want the reward of risks taken (i.e. profits from a company) shared by married partners let alone unmarried ones.

[northernladuk]

Which is why employing her rather than a shareholding may be more useful.
At least then there would be a contract of employment, list of responsibilities and duties, annual appraisal, etc.
Set her up with a company email address, make her the main correspondent with the accountant, her responsibility to deal with company mail, maintain the company office, its stationery, etc.

This can include a bonus scheme and eye-watering pension contribution, as advised by an accountant.

And redundancy

[northernladuk]

harsh.... have we met?

I would be willing to split but don't want to get in a bunfight over who gets referral fees.
The new Gorilla referral system is a pain anyway. But it is £200 right now rather than £100.

How about we don't tell the OP that. Bung him 50 quid and you we can spend the rest at your local hangouts? Show me how the big boys play.

[northernladuk]

It won't remember tax law is entirely different to all other parts of the law and as shown by the Arctic case, HMRC don't want the reward of risks taken (i.e. profits from a company) shared by married partners let alone unmarried ones.

True dat.

[GhostofTarbera]

Yes, it's a good point. I'm proposing this month and we will likely be married at some point next year. COVID has delayed a lot of our plans. My intention is to stay together with her until death do us part, so the business has very much become a family endeavour. She has given up her career to raise our children.

Thanks all for the comments. I've been using FreeAgent to date, but it seems like an accountant will be worth spending a bit of money on to get this sorted correctly? I was going to use your referral code for Gorilla Accounting northernladuk, until you doubted my honesty

Craig@Clarity is it fair to assume this is becoming a more common set up for your clients? Marriage seems to be on the decline and co-habiting on the rise. Wondering how many people have had a similar idea.

don’t do it man !!!

this year love is next year fish and chip wrapper !!

say goodbye to girlfriend benefits