Spouse Salary

[northernladuk]

Thanks - so really I can only pay a salary for Oct & Nov this year at £624? shame he has not used any of his allowance this year due to studies!

And by creating an artificial arrangement to use his tax allowance you are commiting blantent tax avoidance, something the govt is crawling all over at the moment if you hadn't noticed.

[Podgy]

You pay an accountant £1200 a year to do this. Bearing in mind you are just starting this carry on why do you think he is worth paying a lump sum for just a few months on the books?. And paying him in to your account? Jesus.

I think you need to get an accountant and forget paying your husband IMO. What are your husbands qualifications for doing your accounts? The fact you are having to ask this makes me think none at all so will be nothing more than a book keeper. A fact HMRC will easily prove when you are investigated. I am sure there will be plenty of other flags them to spot you if you don't understand things such as where you put hsi pay. Remember one very important point. You are legally responsible for your accounts, claiming ignorance is NOT a defense. You are responsible to do it properly. Your approach to this is shocking.

But as ever I presume you are looking for the answer you want to hear and not the correct advice.

Hey Northern Grumpy - I've missed you! always consistent

[Podgy]

whats hsi pay??

[northernladuk]

Hey Northern Grumpy - I've missed you! always consistent

As always when it comes to people wanting to take the piss....

[Clare@InTouch]

Thanks - so really I can only pay a salary for Oct & Nov this year at £624? shame he has not used any of his allowance this year due to studies!

You can pay more, but then he'll have NI to pay. Maybe not a bad thing if you consider state pension credit and certain contributory benefits.

As others have said though, you'd have a hard time if HMRC asked you to explain what your husband did for that money.

[northernladuk]

whats hsi pay??

It's the thing you want to put in your account.

[Podgy]

Well I wouldn't. £7k pa for doing the accounts of a one-man company when a professional does it for £100 a month? Doesn't really wash, does it?

Is he a Qualified Accountant? Even if he is £7k is way OTT.

I just used the 7k figure for the tax/NI threshold - I've seen other posts on here where spouses are being paid around 4k pa for admin? which is more than a professional are you saying no spouse should be paid more than the accountant - which could be less than 50 a month!

[northernladuk]

I just used the 7k figure for the tax/NI threshold - I've seen other posts on here where spouses are being paid around 4k pa for admin? which is more than a professional are you saying no spouse should be paid more than the accountant - which could be less than 50 a month!

That is correct but people take the piss and convince themselves it is the right thing to do. It is all down to your attitude to risk. You will probably get away with it, but then again you might not.

I presume your husband has been doing this before you were married as well? No? Another flag to HMRC that he is suddenly starts doing this for you around the time you were married. Coincidence?

[stek]

I just used the 7k figure for the tax/NI threshold - I've seen other posts on here where spouses are being paid around 4k pa for admin? which is more than a professional are you saying no spouse should be paid more than the accountant - which could be less than 50 a month!

Let's be realistic, how much admin is there? 1-3 hours a week checking money's in, inputting expenses into spreadsheet? So at £10/hr say, 150 a month?

Why are you doing it? To dodge tax or a genuine need? How qualified is your hubby? Can he sort out the VAT return on time to avoid penalties? How's his CT knowledge? PAYE/NI returns?

Could end up costing you more than any tax saving.....

[Podgy]

That is correct but people take the piss and convince themselves it is the right thing to do. It is all down to your attitude to risk. You will probably get away with it, but then again you might not.

I presume your husband has been doing this before you were married as well? No? Another flag to HMRC that he is suddenly starts doing this for you around the time you were married. Coincidence?

Not coincidence - planned. My husband is not from the UK so he will be assisting with my company until he can start his career here.

Alternatively - is there a way I can use his tax allowance?

I dont mind risks - I'm sure if hector came knocking a nice cuppa & cake will suffice.