PAYE & NI Question

[knight007]

i am paying her £3150 per year.

[northernladuk]

Just out of interest how much are you paying your wife? Is she honestly, and I mean honestly, doing enough to justify this? Answering phones and doing your booking does not justify 5K+ a year. If she isn't you are looking for trouble.

[Greg@CapitalCity]

My question is - can my wife claim this extra PAYE and NI back from HMRC at the end of the tax year?

Once NI is paid to your company secretary its gone. Depending on the level of salary, and any prior earnings, any PAYE paid in December can effectively be paid back again in subsequent months.

Have you considered making your wife a Director? The different rules for Directors regarding NI would possibly mean she would avoid paying any NI in December (again, depending on how much salary you intend to pay).

[knight007]

I formed my limited company at the end of September this year.
I have not started payroll yet. I have planned to start paying myself and my secretary a salary beginning on 1st December 2011.

I asked my accountant if I could pay my secretary for the work she did in October as well as November i.e. 2 months pay paid in December.

My accountant says "3 months salary can be paid in Dec , but she will be liable for PAYE/Ni on amount paid, as it will be over monthly threshold."

My question is - can my wife claim this extra PAYE and NI back from HMRC at the end of the tax year?