Yes. It only becomes an issue if the level of salary is well in excess of what would be considered reasonable for the amount of work being done (HMRC could argue the salary is not wholly and exclusively for business purposes and disallow it for corporation tax relief) but that risk applies whoever you are hiring.
Do be aware of any additional responsibilities this may bring with it as an employer, such as workplace pensions and employers liability if you don't already have it.
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Admin work for my Ltd takes 30 mins a month max, I pay my accountant to do the rest, hiring your bro to do admin work for 10 hours a week sounds like a tax mule for a one person Ltd to me.Last edited by SlipTheJab; 20 November 2016, 14:10.Leave a comment:
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Of course its OK. As long as everything you say is the truth.
If he genuinely does 10 hours of work a week for you, you should pay him for that.Leave a comment:
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Hmmm ive got a few comments here so...
You need to be honest with yourself here. Does you company really need 10 hours a week to do admin work? I dont believe that for one minute and nor will anyone else running a one director limited.
Why arent you speaking to your accountant?
Never mix family and business.
Why do you want to give your money away to your brother?Last edited by northernladuk; 18 November 2016, 23:41.Leave a comment:
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Compensate family member
Is it allowed to hire family members for 10 hours a week to do your administration?
My brother wants to earn some extra cash and it would help me out.
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