Originally posted by psychocandy
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: How much to pay the other half?
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "How much to pay the other half?"
Collapse
-
-
Originally posted by Clare@InTouch View PostDepends how much she earns, but if you're her second employment then she'd be on a BR code meaning the tax she'd pay would equal the CT you saved = no overall benefit.
If her combined income from both jobs was > higher rate threshold then ultimately tax will be payable in excess of the CT saved. This would necessitate a tax return and should ultimately cause the tax office to spit out a flat rate D code (assuming they still do these) in order to at least try and collect the correct amount through PAYE.
In the above scenario if she happened to be paid enough in the second job to be paying NI then this could lead to NI in excess of the normal employee maximum being paid. In this case it is reclaimable direct from the contributions office, but its a pain to have to do it.
I accept the above scenarios are unlikely in practice though.
Leave a comment:
-
Originally posted by psychocandy View PostI take it theres not much point paying your Mrs if she works somewhere else anyway?
Leave a comment:
-
Originally posted by Clare@InTouch View PostIf she has a normal 747L tax code then you can pay £589 per month before any tax or NI kick in, and she'll still then get credit for her state pension.
Leave a comment:
-
Originally posted by Work2live View PostNew Ltd company and 1st post...
Ok I would like to employ my wife in the most tax efficient manner, this will be her only employment I am torn between paying around the £400 pcm and £600 pcm i think if i pay the 600 i then have to pay other charges (NI contributions etc?) and if i pay upto £442 my wife will still qualify for the state pension/benefits without needing to worry about NIC's.
What do people recommend? I have a ltd company just me and would employ my wife in a clerical capacity but that may increase to i.t design work. Does my wife have to do the book keeping or is filing enough?
Thanks
Leave a comment:
-
Yeah, definitely consider making your spouse a shareholder and pay dividends (presuming you would hit the higher rate tax otherwise).
Leave a comment:
-
Originally posted by Work2live View PostNew Ltd company and 1st post...
Ok I would like to employ my wife in the most tax efficient manner, this will be her only employment I am torn between paying around the £400 pcm and £600 pcm i think if i pay the 600 i then have to pay other charges (NI contributions etc?) and if i pay upto £442 my wife will still qualify for the state pension/benefits without needing to worry about NIC's.
What do people recommend? I have a ltd company just me and would employ my wife in a clerical capacity but that may increase to i.t design work. Does my wife have to do the book keeping or is filing enough?
Thanks
Get her to do the book keeping. Firstly it means she's earning the money for actually doing something, and second it saves you having to pay the accountant(or the time yourself) to do the bookkeeping.
Leave a comment:
-
What about making her a shareholder as well and paying divs? You have to make sure if you are going to pay her that she is seen to be earning that money. A bit of booking keeping doesn't equate to £600 a month. I am sure loads of people pay their other halves and they don't justfiy it but it will end in tears.
Could be worth checking the search out. This has been asked and discussed a bit. Check out income splitting or words like that.
Leave a comment:
-
How much to pay the other half?
New Ltd company and 1st post...
Ok I would like to employ my wife in the most tax efficient manner, this will be her only employment I am torn between paying around the £400 pcm and £600 pcm i think if i pay the 600 i then have to pay other charges (NI contributions etc?) and if i pay upto £442 my wife will still qualify for the state pension/benefits without needing to worry about NIC's.
What do people recommend? I have a ltd company just me and would employ my wife in a clerical capacity but that may increase to i.t design work. Does my wife have to do the book keeping or is filing enough?
Thanks
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: