Reply to: Wife as a secretary or assistant or company director

[ruasonid]

A stipend is payment for work that does not necessarily representative of the work performed, nothing to do with how the payment is made.

So stipend can be paid by invoice or through payroll.

What would be the pros and cons of either approach?

[missinggreenfields]

A stipend?

A stipend is payment for work that does not necessarily representative of the work performed, nothing to do with how the payment is made.

So stipend can be paid by invoice or through payroll.

[stek]

One positive thing, as you utter your last mortal breath on your death bed you can say to yourself 'Phew, got away with it' and let the wife fret about it.

That's if they've not got you by then.

[ruasonid]

Yes. But they don't end up on the payroll, according to your earlier post. So how do they get paid?

A stipend?

[missinggreenfields]

That's if HMRC both to check up.

Though your accountant will probably say "No" and drop you as a client before that.

My accountant, and the one before that, and the one before that, and my IFA have a different interpretation from you.

So I'll stick with the advice from experts, thanks, rather than the drivel posted here.

[SueEllen]

According to SueEllen you're going to get done for tax evasion then.

Unless her posts are a load of codswallop in this matter.

That's if HMRC both to check up.

Though your accountant will probably say "No" and drop you as a client before that.

[missinggreenfields]

So do I, what I was getting at was if it's possibvle to pay into my wife's SIPP as well if she's a company officer. Which I thought was a bit of a long shot (but worth asking), however if I got her doing some work and paid her a salary that might change.

So my understanding is:

company officer (no salary) - no pension contributions
salaried employee - yes to pension contributions (up to 40k/year?)

She already has a part time job with a salary so it would be complicated...

She doesnt have to do any work for the company to be paid - being a director or company officer has significant legal responsibilities which you can be paid for in respect of those responsibilities.

If she is paid for that work then there is nothing to prevent the company from additionally paying into a pension plan for her directly.

So if the company pays her for the legal responsibilities that she has taken on, then the company can also pay into the pension plan for her - so get her £40k stashed away.

[missinggreenfields]

MyCo doesn't run a pay roll. But I do pay divis. And I pay into my SIPP from MyCo.

According to SueEllen you're going to get done for tax evasion then.

Unless her posts are a load of codswallop in this matter.

[missinggreenfields]

Actually HMRC will count that as tax avoidance.

You can only pay into pension plans of people that are on the company pay roll.

So you pay them via payroll then. If the officer is being paid, then you pay them.

[Jog On]

So which is it. What politicians do or what is legal?

What is legal with plenty of justification!

[northernladuk]

I'm only interested in paying the spouse 40k pension paymens a year without having to pay the 8k salary. My justification would be that I take my lead from our esteemed politicians who lead with their actions.

The legality is what I'm concerned with.

So which is it. What politicians do or what is legal?

[Jog On]

I thought there was some issue around HMRC not looking very favourably on paying a spouse 8k a year and then giving them 40k pension payments? I would have thought that would have been very difficult to justify to them for fairly obvious reasons.

I'm only interested in paying the spouse 40k pension paymens a year without having to pay the 8k salary. My justification would be that I take my lead from our esteemed politicians who lead with their actions.

The legality is what I'm concerned with.

[northernladuk]

I'll ask my accountant - because another £40k/year into the family retirement pot offset against CT without having to pay a salary would be rather good - probably too good to be true but if David Cameron can get away with being in the Panama papers whils being an acting prime minister I suppose anything is possible...

I thought there was some issue around HMRC not looking very favourably on paying a spouse 8k a year and then giving them 40k pension payments? I would have thought that would have been very difficult to justify to them for fairly obvious reasons.

[Jog On]

I understand that if your wife is simply Co Sec then a company SIPP contribution would be frowned upon by HMRC. But it is certainly worth investigating further I would have thought.

I'll ask my accountant - because another £40k/year into the family retirement pot offset against CT without having to pay a salary would be rather good - probably too good to be true but if David Cameron can get away with being in the Panama papers whils being an acting prime minister I suppose anything is possible...

[Fred Bloggs]

So do I, what I was getting at was if it's possibvle to pay into my wife's SIPP as well if she's a company officer. Which I thought was a bit of a long shot (but worth asking), however if I got her doing some work and paid her a salary that might change.

She already has a part time job with a salary so it would be complicated and expensive...

I understand that if your wife is simply Co Sec then a company SIPP contribution would be frowned upon by HMRC. But it is certainly worth investigating further I would have thought.