I have been asked by a client who I prepare accounts and a tax return for if he can employ his wife for administation duties. Can anyone tell me what the implications for this would be?
No problem, as long as she actually does work and is paid a market rate for the work she does. In other words, it's not being done simply to use up her personal allowance.
Assuming she doesn't already have an income.
Alternative view may be to change to a partnership, but there are other implications.
this one's an age old question which has been the source of much court time. Generally one needs to look at the legitimacy of the arrangement. Is it a legitimate role or a means of tax avoidance?
There's been a recent discussion on this subject over on accounting web. Have a look at this link :
In short, no reason why not providing that the arrangement is a legitimate business arrangement rather than a means of tax avoidance.
There may of course be a certain element of hire a spouse and get a tax investigation free attached to this but even if investigated provided that you are doing nothing wrong then there is nothing to worry about.
Oh, and welcome to the forum.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
