Self Employed Builder Paying Wife A Small Salary
Natsmomma
Registered Posts: 39 Epic contributor 🐘
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
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
0
Comments
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This is common nature and is unusual for HMRC to object to unless the wifes salary is completely ridiculous.0
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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.0
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Thank you both for clarifying this. It's good to get another opinion.
Kind regards0 -
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?0
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Oh yes! I only usually use this when the wife/husband is not employed elsewhere. Otherwise it would involve PAYE.0
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Should he have to register as an employer for this?0
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Only if he needs to use PAYE. If the wife has no other job, then no, as she is below the tax threshold.0
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