Would it be worth it?
Discussion
I have my own cleaning company which I run just by myself turning over 25k per year. I am self employed.
My wife is employed and works for a large company 3 days a week for 10k per year.
My question is this:
I would like my wife to work 1 day a week as my secretary for 5k per year.
What would be the tax implications of this? Would it be financially worth our while?
Many thanks in advance.
My wife is employed and works for a large company 3 days a week for 10k per year.
My question is this:
I would like my wife to work 1 day a week as my secretary for 5k per year.
What would be the tax implications of this? Would it be financially worth our while?
Many thanks in advance.
Depends but broadly speaking on those amounts there is no benefit to paying her via the company books as such (IMO), might as well just draw the money yourself (I assume here you are a Sole Trader rather than Ltd Company) and pass it on to her. Only benefit would come if you start getting into the 40% tax bracket, at that point it makes more sense to pay her as she will still be on lower rate and it will reduce your profit to keep you under it. Doing it too early will just give you an administrative burden with self assessment returns for her etc that she probably at present doesn't have to do, if on PAYE.
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