Self Employed Builder Paying Wife A Small Salary

Natsmomma Registered Posts: 39 ? ? ?
I have recently taken over the books for a sole trader in the building industry.

His previous accountant allowed him to it through £3k/annum for his wife's salary as she helps him with bookkeeping and phone calls etc.

I have read that this has to be proven by means of actual payments and work being done, but are there any other rules which I should be aware of, please?

Thank you in advance


  • groundy
    groundy Registered Posts: 495
    This is common nature and is unusual for HMRC to object to unless the wifes salary is completely ridiculous.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Agreed. Not usually a problem unless the wages are excessive, then they will ask for proof of what she actually does. I would just check with them what her role is in the business, just to cover yourself for questions at a later date.
  • Natsmomma
    Natsmomma Registered Posts: 39 ? ? ?
    Thank you both for clarifying this. It's good to get another opinion.

    Kind regards
  • jewels.p
    jewels.p Registered Posts: 1,774
    If the Wife is paid a Salary of 3k does she have to declare it as income if she is in Full-Time Employment and pay the tax due on it through PAYE?
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Oh yes! I only usually use this when the wife/husband is not employed elsewhere. Otherwise it would involve PAYE.
  • EleanorH
    EleanorH Registered Posts: 5 Regular contributor ⭐ ? ⭐
    Should he have to register as an employer for this?
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Only if he needs to use PAYE. If the wife has no other job, then no, as she is below the tax threshold.
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