Reply to: Spouse Salary

[Jessica@WhiteFieldTax]

And what would he be doing as an employee to justify the £7k salary? Just 'doing the books' isn't enough.

Its a good question, but in practice its very rare for HMRC to persue it - I've seen it once I think in 25 years.

[northernladuk]

Oh my Lordy, I've just looked at the OP's other threads she's started. They don't make for pleasant reading do they??!!

You are learning

[captainham]

So this is just another attempt to waste the time of the accountants who post on here like every other thread you (& kittycat) started.

Genius.

Oh my Lordy, I've just looked at the OP's other threads she's started. They don't make for pleasant reading do they??!!

[Pondlife]

So this is just another attempt to waste the time of the accountants who post on here like every other thread you (& kittycat) started.

Genius.

[Podgy]

Your husbands inability to do the job correctly will be like a red rag to a bull. You are going to be more at risk of (failing) an investigation than any other scenario we have discussed on here in a very long time. The very fact your husband can't do the job will be alerting them to your situation.

My husband is a very capable girl friday!

[captainham]

Why don't you just go the whole hog and use the HMRC IR35 contract review service too?

I mean, if you're going to poke the hornet's nest, no sense in doing things in half-measures!

[northernladuk]

as if they will ever know

Your husbands inability to do the job correctly will be like a red rag to a bull. You are going to be more at risk of (failing) an investigation than any other scenario we have discussed on here in a very long time. The very fact your husband can't do the job will be alerting them to your situation.

[Pondlife]

as if they will ever know

Of course they'll know since your hubby will obviously be filing the correct paperwork at the correct time to run the payroll. You know, like you're paying him to.

[Podgy]

Not true. OP can do whatever the hell they like. They just need to be ready to get a spanking from HMRC at some point!

as if they will ever know

[captainham]

Shame you can't then hey.

Not true. OP can do whatever the hell they like. They just need to be ready to get a spanking from HMRC at some point!

[northernladuk]

Yes he can work full-time.

I wanted to put through as salary to reduce the corp tax bill - dividends wont make any difference to that.

Shame you can't then hey.

[Podgy]

1. Make sure you check his visa status and right to work in the UK, not kidding, you still are obligated to check, fines are unlimited!

2. Too risky I think within your Ltd, why can he not get an unrelated job. I think NLUK needs a pillow-fluffer.....

3. You don't want an investigation - they will find stuff, want the tax back plus interest plus 100% penalties, plus you will not be working while Mr or Mrs Tax Person is sat in your house with you drinking tea and eating cake...

Why not just make him a shareholder and and use his tax allowance on dividends?

Yes he can work full-time.

I wanted to put through as salary to reduce the corp tax bill - dividends wont make any difference to that.

[northernladuk]

Not coincidence - planned. My husband is not from the UK so he will be assisting with my company until he can start his career here.

Due to your slapdash approach to all this I have to ask. Is he legally allowed to work in the UK?

Alternatively - is there a way I can use his tax allowance?

Speak to your accountant.

I dont mind risks - I'm sure if hector came knocking a nice cuppa & cake will suffice.

I really think you believe this.

[stek]

Not coincidence - planned. My husband is not from the UK so he will be assisting with my company until he can start his career here.

Alternatively - is there a way I can use his tax allowance?

I dont mind risks - I'm sure if hector came knocking a nice cuppa & cake will suffice.

1. Make sure you check his visa status and right to work in the UK, not kidding, you still are obligated to check, fines are unlimited!

2. Too risky I think within your Ltd, why can he not get an unrelated job. I think NLUK needs a pillow-fluffer.....

3. You don't want an investigation - they will find stuff, want the tax back plus interest plus 100% penalties, plus you will not be working while Mr or Mrs Tax Person is sat in your house with you drinking tea and eating cake...

Why not just make him a shareholder and and use his tax allowance on dividends?

[captainham]

I dont mind risks - I'm sure if hector came knocking a nice cuppa & cake will suffice.