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Spouse Salary

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    Spouse Salary

    I recently got married and want to pay my husband a salary thru my ltd co.

    My end of year is Nov so really I would like to pay a lump sum salary to my spouse before this date below all the tax/NI rates i.e around 7K to reduce the CT.

    I have not registered him as an exployee or director yet - he has no other employment at present.

    I presume I will have to register his employment first - also can you pay your spouse into your own account or does it have to be an account specifically in their name or joint?

    #2
    And what would he be doing as an employee to justify the £7k salary? Just 'doing the books' isn't enough.

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      #3
      Unless they are actually doing some work for the company to justify the salary I would be wary of this.

      They can be a shareholder though and receive dividends although they won't get their NI stamp this way because they're not paying NI. But on the plus side, they're not paying NI

      Comment


        #4
        Originally posted by Podgy View Post
        I presume I will have to register his employment first - also can you pay your spouse into your own account or does it have to be an account specifically in their name or joint?
        Forget all the rest, why on earth would you be able to pay his wages into your account?

        Comment


          #5
          If you pay him a lump sum of £7k now then he will pay tax (maybe) & NI on it. In order to not suffer that, he'd need to be paid in instalments throughout the whole tax year (so £624 a month, April to March).

          I'd recommend you pay him to reflect what he does, and that you pay direct to his account. Keeps things tidy should Hector come knocking.

          The same would be true about dividends, if you're paying them to him. Make the payments into his own account, or a joint account, not your own.
          ContractorUK Best Forum Adviser 2013

          Comment


            #6
            Originally posted by stek View Post
            And what would he be doing as an employee to justify the £7k salary? Just 'doing the books' isn't enough.
            He would be doing the books - I dont have an accountant - so the aim is that he will do the full accounts.

            Comment


              #7
              Originally posted by Podgy View Post
              He would be doing the books - I dont have an accountant - so the aim is that he will do the full accounts.
              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.
              Last edited by northernladuk; 2 October 2012, 10:32.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by Clare@InTouch View Post
                If you pay him a lump sum of £7k now then he will pay tax (maybe) & NI on it. In order to not suffer that, he'd need to be paid in instalments throughout the whole tax year (so £624 a month, April to March).

                I'd recommend you pay him to reflect what he does, and that you pay direct to his account. Keeps things tidy should Hector come knocking.

                The same would be true about dividends, if you're paying them to him. Make the payments into his own account, or a joint account, not your own.
                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!

                Comment


                  #9
                  Originally posted by Podgy View Post
                  He would be doing the books - I dont have an accountant - so the aim is that he will do the full accounts.
                  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.

                  Comment


                    #10
                    Originally posted by Podgy View Post
                    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!
                    Listen to the advice you've received in other posts, not just ones you want to hear.

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