Reply to: Spouse on the books

[Alan @ BroomeAffinity]

As soon as i posted I realised the wording could have been better. I thought rather than edit it, I'd let the amateur Sid Jameses and Finbar Saunderses of the forum have their fun. :-)

[pr1]

If not, is there something special about what she can do to justify the extra?

[Alan @ BroomeAffinity]

Although that could be interpreted as a veiled criticism of Alan's criticism.

And she may have a point. It was a cheap shot, but sometimes I can't resist those.

[Alan @ BroomeAffinity]

is an hour with tony blair really worth £200,000 for an after dinner speech?
is wayne rooney really worth £300,000 per week for 3 training sessions and a game he undoubtedly under-performs in
is lewis hamilton really worth £32million for 19 races per season?

it's very hard [for HMRC] to prove how much someone's time is worth and when they're overpaid, which is why it's very rarely pursued

how many people here are getting £50++ per hour to browse CUK?

I always think the litmus test is this: Would you pay someone who is unconnected to you the same wage? If not, is there something special about what she can do to justify the extra? If you can't honestly answer YES to both of these then imo its not a valid expense.

(and yes, I agree that to an extent, Blair, Rooney and Hamilton are overpaid but market forces dictate that this is how much they should be paid.)

[northernladuk]

is an hour with tony blair really worth £200,000 for an after dinner speech?
is wayne rooney really worth £300,000 per week for 3 training sessions and a game he undoubtedly under-performs in
is lewis hamilton really worth £32million for 19 races per season?

it's very hard [for HMRC] to prove how much someone's time is worth and when they're overpaid, which is why it's very rarely pursued

how many people here are getting £50++ per hour to browse CUK?

True but not the best example. They are unique in their fields so can demand that rate with nothing muchnto compare. Doing some paperwork for X per hour is much more comparable. I suspect it's not pursued due to the risk/returns are not worth it.

I'd much rather the gov nailed this down than raiding our T&S and normally I'd have said its a nice easy target for the next raft of cuts but the sledgehammer coming has probably dealt with it now.

[pr1]

is an hour with tony blair really worth £200,000 for an after dinner speech?
is wayne rooney really worth £300,000 per week for 3 training sessions and a game he undoubtedly under-performs in
is lewis hamilton really worth £32million for 19 races per season?

it's very hard [for HMRC] to prove how much someone's time is worth and when they're overpaid, which is why it's very rarely pursued

how many people here are getting £50++ per hour to browse CUK?

[mudskipper]

I won't be drawn on that, Alan, expect to say during my time on this forum, I've adopted a policy of not making direct or veiled criticism of other professionals, recognising that matters of complexity and professional judgement are seldom served by a one line reply.

Although that could be interpreted as a veiled criticism of Alan's criticism.

[mudskipper]

YourCo would pay less tax. But the money paid to her would be hers, not yours. So unless you are supporting her, you're not going to be better off. Also bear in mind that she will not be entitled to JSA or any other benefits that she may be claiming.

[The Spartan]

How does it effect automatic enrolment though? As at present it the company only has a sole Director you can opt out.

[WordIsBond]

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

Alternatively, it could be read as, "HMRC doesn't seem to see anything wrong with the practice," which puts quite a different light on things, don't you think?

Since this is a question of interpretation rather than of clear rules being followed or broken....

[WordIsBond]

Jessica, my take on it has been that a salary of £8K is unlikely to be challenged. It is difficult to prove it is inappropriate and there is a relatively small amount of money involved. A salary of £3-4K is easy to defend for part-time bookkeeping / etc, so the amount in dispute becomes pretty small. This is only likely to be challenged if there are other areas where you are skating close to the edge as well.

And that there is no risk at all of a challenge if the responsibilities / liabilities of being a company director are added into the mix.

Does that fit with your experience?

[Jessica@WhiteFieldTax]

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

I won't be drawn on that, Alan, expect to say during my time on this forum, I've adopted a policy of not making direct or veiled criticism of other professionals, recognising that matters of complexity and professional judgement are seldom served by a one line reply.

[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.

[JB3000]

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

Took the words out of my mouth

+1

[JB3000]

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

Good point

+1