Self Employed Builder Paying Wife A Small Salary

NatsmommaNatsmomma Feels At HomePosts: 39Registered
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


  • groundygroundy Trusted Regular Posts: 495Registered
    This is common nature and is unusual for HMRC to object to unless the wifes salary is completely ridiculous.
  • T.C.T.C. Experienced Mentor Posts: 1,448Registered, Tutor
    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.
  • NatsmommaNatsmomma Feels At Home Posts: 39Registered
    Thank you both for clarifying this. It's good to get another opinion.

    Kind regards
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    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. Experienced Mentor Posts: 1,448Registered, Tutor
    Oh yes! I only usually use this when the wife/husband is not employed elsewhere. Otherwise it would involve PAYE.
  • EleanorHEleanorH New Member Posts: 5Registered
    Should he have to register as an employer for this?
  • T.C.T.C. Experienced Mentor Posts: 1,448Registered, Tutor
    Only if he needs to use PAYE. If the wife has no other job, then no, as she is below the tax threshold.
Sign In or Register to comment.