MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Both being self employed and me being well into the 40% bracket and Mrs STR not being, can we spread the earnings?
i.e. I 'employ' Mrs STR as a secretary and pay her say a grand a month? Not looking to do anything illegal per se, but if there is a genuine loophole, I may as well use it.
She has to actually do something!! There are a few test cases fro unbrealla companies etc. The rule is she does have to have a job that she does to be paid other wise it's a dodge. If she does your invoicing etc that may be enough. Are you Limited company? may be a better route and you can both be co directors. Speak to a GOOD accountant who knows about this rather than here!!
I was employing my partner for a year, basically i work as a limited company. She was employed as my secretary and i paid her and myself the miminum wage. It was done to drop the tax bill the company got.
But at the time she was not working due to health issues.
Are you an MP?
If you are a limited company you can make her a shareholder and pay her a monthly dividend. That way she does not have to work for you.
Speak to an accountant tho'
If you are a limited company you can make her a shareholder and pay her a monthly dividend. That way she does not have to work for you.
Speak to an accountant tho'
You'd have to pay employers ni on it presumably, which would reduce the advantage quite a bit.
Obviously she'd need to actually be doing a job for you, or else it'd be fraud.
Given it is such an obvious fraud, it's probably one that they might actually catch you for, particularly if she's got another job that she actually does.
She is a self-employed barber and works 3-4 days a week, so could technically work for me 1-3 days invoicing/accounting etc. I would pay her as a sub-contractor, not PAYE.
Both being self employed and me being well into the 40% bracket and Mrs STR not being, can we spread the earnings?
Limited company is the way and then you don't have the hassle involved with employing anyone else. My personal tax liability for 2010/2011 was £1.
Not really in the position to go Ltd at the moment, as I juggle my personal and business overdrafts when cash flow is slow - I would imagine this would get a bit tricky/messy as a Ltd co.
ACCOUNTANT!!!
Keep going on here and there will be pitchforks coming have you seen the tags!!
He is a troll 🙄
Lol mikewsmith, couldn't give a toss.
Just don't like giving 40% to HMRC, nothing to do with child benefit.
Not really in the position to go Ltd at the moment, as I juggle my personal and business overdrafts when cash flow is slow - I would imagine this would get a bit tricky/messy as a Ltd co.
You can loan between the two, and as long as loans are repayed within 9 months minus 1 day, for all intents and purposes they never happened.
At least three STWers work for the revenue, I'm sure they can take the necessary level of interest in your question on Monday to give best advice.
nothing wrong or illegal with tax avoidance, it's tax evasion that puts you in an open prison.
most people fail to see the difference.
money spent with an accountant is money saved.
Loving the tags - keep em coming. I'm sure anyone tagging, either doesn't give 40% to HMRC, or if they do, doesn't actually enjoy doing so.
iDave, as I said, not looking to do anything illegal, my wife could genuinely carry out work for me - up to me how much I pay her surely?
I was kidding 😉
Common sense to me.
I'm sure anyone tagging, either doesn't give 40% to HMRC, or if they do, doesn't actually enjoy doing so.
Just out of interest, why do you think you should pay less tax?
Just out of interest, why do you think you should pay less tax?
I did it because it was perfectly legal. The laws regarding what you can and can't claim as business expenses/apportion your money to/etc. are there for a reason. If you don't use them, then more fool you.
Why pay more tax than the law requires? Do you pay more than the asking price for goods and services?
I did it because it was perfectly legal. The laws regarding what you can and can't claim as business expenses/apportion your money to/etc. are there for a reason. If you don't use them, then more fool you.
Fair enough. Just don't go moaning when there's no public service and taxes go up.
Perfectly legal? Nothing dodgy at all? Not declaring your private mileage in the vehicle you write off against tax? nothing of that ilk?
Its clear the OP is attempting to dodge tax not to actually employ his wife .
This is why we need more tax inspectors - stop this petty tax evasion and there would be plenty of money.
I don't have a vehicle written off against tax to do private mileage in TJ, so no. Nothing of that ilk. My accountant says I could put more of my purchases, such as clothes, food, etc. against the company should I wish, but I never do: I'm crap at keeping receipts. As I said, absolutely perfectly legal. And I'm pretty sure bandying about the phrase "tax evasion" could be seen by some as libellous.
Given it is such an obvious fraud, it's probably one that they might actually catch you for, particularly if she's got another job that she actually does.
This, tbh. Nothing wrong with paying the going rate for work that she could feasibly do. I doubt it's as simple as deciding to pay her what you want. I expect the IR may call fraud on you if you were paying an unskilled person £100 an hour to do your accounts! I'd agree with the accountant advice, always appears to be money well spent for those people I know. Nothing immoral about trying to reduce your tax bill, as long as it's above board.
Fair enough then flying ox.
Maybe could be seen as libellous like some but I would claim fair comment. Anyway the OP has no reputation to lose 😉 😈
Hehe.
This is why we need more tax inspectors - stop this petty tax evasion and there would be plenty of money.
while you are at it stop the waste of taxpayers money by public sector 'sick days' dock their pay with out a doctors letter.
if you compare the days off taken by self employed people per year to those who don't have to worry about 'earning' as their wages are paid when they have a [s]hangover[/s] dodgy tummy you will see the true cost of civil servants blatant cheating of the taxpayer.
while you are at it stop the waste of taxpayers money by public sector 'sick days' dock their pay with out a doctors letter.
if you compare the days off taken by self employed people per year to those who don't have to worry about 'earning' as their wages are paid when they have a hangover dodgy tummy you will see the true cost of civil servants blatant cheating of the taxpayer.
I suspect you'll find tax [s]evasion[/s] efficiency costs the exchequer considerably more than a few sickies.
You also seem to miss the blatantly obvious from behind your Torygraph - public sector workers [i]are[/i] tax payers.
i would just chuck it all in an go on the rock and roll, less chance of offending Mr and Mrs Perfect that way.
if you compare the days off taken by self employed people per year to those who don't have to worry about 'earning' as their wages are paid when they have a hangover dodgy tummy you will see the true cost of civil servants blatant cheating of the taxpayer.
What about private sector workers pulling sickies; how as that different from public sector workers?
When I worked in retail, I pulled as many sickies as I could. Made sure I got my maximum 'allowance'. 😀
MrSmith; don't spose you have any figures what prove that public sector workers pull more sickies than private sector workers, do you?
No, din't think so...
That's rather missing the point, Elfin, as I'm sure you well know.
No it's not.
small business gets stiched every time, if he can claw a bit back by employing the mrs best of luck to him.
meanwhile..
http://www.thisismoney.co.uk/money/news/article-1704527/Taxman-let-Vodafone-off-6bn-bill.html
This is why we need more tax inspectors - stop this petty tax evasion and there would be plenty of money.
More tax inspectors = more people I kneed to take out to lunch....
[satire] Just change your surname to Vodafone, take the HMRC bosses out for a fancy meal and they will be giving you a reacharound before you can say, 'how many billions?'. [/satire]
[url= http://www.private-eye.co.uk/sections.php?section_link=in_the_back& ]Bah.[/url]
We both work for our Ltd company, and as we both earn/invoice our own clients its fine - why don't you just create a limited company that both of you invoice thru.
Then you can pay each of you what you want to. As a guide, just below tax-code and then top-up with divi's to just less than the 40% rate is a good start. Therefore paying neither income tax or NI, only corp tax (and VAT).
And maximise expenses, to reduce profit - not too much though, as you need profit to pay divi's.
Both being self employed and me being well into the 40% bracket
This like one of those "What colour laces for Hong Kong?" threads that CFH is so fond of, isn't it? 😆
Except a little less tasteful.
[img]
[/img]
No it's not.
Yes it is.
Public sector workers, paid by the state, pulling sickes are by definition taking money from the public purse to cover their "illness" when they get paid for the day off.
Private sector workers, paid by the private sector, pulling sickies are by definition taking money from their company's accounts to cover their "illness" when they get paid for the day off.
Self-employed workers, paid or not as a result of their own hard graft and entrepeneuralism, don't pull sickies if they can at all help it because not working = not getting paid.
Yes it is.
No it's not.
Look:
Private sector workers, paid by the private sector, pulling sickies are by definition taking money from their company's accounts to cover their "illness" when they get paid for the day off, leading to reduced profits leading to less taxes paid by company.
I've fixed that for you, for no extra charge.
*nudge*
And the amount of tax revenue lost through a private sector employee pulling a sickie is comparable to the amount taken out of the public purse to pay for a public sector employee's sick pay how? You're fond of asking for figures. How about some to back [i]your[/i] point of view?
TandemJeremy - MemberPerfectly legal? Nothing dodgy at all? Not declaring your private mileage in the vehicle you write off against tax? nothing of that ilk?
Its clear the OP is attempting to dodge tax not to actually employ his wife .
This is why we need more tax inspectors - stop this petty tax evasion and there would be plenty of money.
Nope, nothing dodgy in the slightest and all legal. My books are based totally on bank dealings, no cash runs through the business. I probably do less than 10% personal mileage, but only put 90% through the business.
There would be plenty of money? I've given HMRC around £35k in the last 24 months, I think I'm doing my share to contribute, don't you? How much have you given back to the state out of interest?
Oh and ds - that pic is getting a bit boring now. I don't have loads of cash, a fancy house, a flash motor, or lots of material possessions. Just an expensive coke habit.... (jk) 😉
Oh and ds - that pic is getting a bit boring now. I don't have loads of cash, a fancy house, a flash motor, or lots of material possessions.
I couldn't agree more. Could you imagine having to listen to them telling you rich they are at every opportunity? That would be boring to nauseating levels and quite tasteless.
😉
Yeah don, and not once have I claimed to be rich, so give it a rest. Everything I have, own and do is quite modest to some on here.
This like one of those "What colour laces for Hong Kong?" threads that CFH is so fond of, isn't it?
Except a little less tasteful.
Nah; Flashy's posts are definitely more tasteless. He lacks [i]class[/i], you see. 😐
If you employ someone, then don't you have to pay their NI and that? As well as ensuring the premises used for the work meets all health and safety regulations, etc? And duzent it have to be registered as a business address? Does that need planning consent or something?
I imagine ensuring all these things might be a right headache, not to mention quite an additional expense.
Plus any employees are entitled to all their statutory holidays, sick p[ay etc. That'll have to be ensured too.
Yeah don, and not once have I claimed to be rich, so give it a rest.
You've made the mistake of openly discussing your earnings though, that's just not [i]British[/i], you know...
Both being self employed [b]and me being well into the 40% bracket[/b]
😆
I have a lot of outgoings don. I wasn't particularly good with money when I was younger. Yeah a lot comes in, but a lot goes out. Cue more abuse, but I'm not cash rich by a long stretch. Well maybe to tj I am.
Fred, not so much if she's self employed too
This is why we need more tax inspectors - stop this petty tax evasion and there would be plenty of money.
Tax Avoidance, not evasion.
Tax evasion - he is considering creating an imaginary job for his wife to reduce tax. Not because he needs someone to do a job.
Nothing to add except in my tired state I read the original title as
"Enjoying your spouse"
And I don't know of a tax break for that 😮
I have a lot of outgoings don. I wasn't particularly good with money when I was younger. Yeah a lot comes in, but a lot goes out.
Bless, but you were shouting about being well into 40% territory, which walls you piss it up don't really interest me, but the constant reminders of 300 quid per day, or whatever it is, and all the other lifestyle clues are a quite amusing in their tackyness.
I can't actually believe that this is a genuine question either. I'm quite sure that a little bit of forum detectivery could find you true identity. I would also be incredibly surprised to discover that tax inspectors don't ride mtbs and/or read internet forums.
Tax evasion - he is considering creating an imaginary job for his wife to reduce tax. Not because he needs someone to do a job.
no it's avoidance if she prints off some invoices and takes them to the post office for a fee.
it's a legal manipulation of the system. it has to be illegal to be called tax evasion.
Tax evasion - he is considering creating an imaginary job for his wife to reduce tax
No, he's decided that for legitimate business reasons he needs a secretary and is considering employing his wife in the role.
Both being self employed and me being well into the 40% bracket and Mrs STR not being, can we spread the earnings?i.e. I 'employ' Mrs STR as a secretary and pay her say a grand a month?
Note his inverted commas.
he clearly intends to invent a non job for his wife to evade tax.
No, he's decided that for legitimate business reasons he needs a secretary and is considering employing his wife in the role.
Is he balls! 😆
Did you not bother reading his OP?
Both being self employed and me being well into the 40% bracket and Mrs STR not being, can we spread the earnings?i.e. I 'employ' Mrs STR as a secretary and pay her say a grand a month? Not looking to do anything illegal per se, but if there is a genuine loophole, I may as well use it.
All he's doing is what everybody does in this society; look for maximum gain for minimum pain.
It might seem selfish, but that's the society we live in. Entitlement without Responsibility.
Now if tax were assessed on household income, he and his wife would be paying more tax between them.
But would that be any 'fairer'? It would benefit [i]society[/i] better.
It might seem selfish, but that's the society we live in. Entitlement without Responsibility.
A bit like trying stuff on in your LBS and buying it off the internet, eh Fred? What was it you said again
Business is business; dog eat dog. My priority is to myself
😉
Anyone who is self employed and pays 40% tax needs to shoot their accountant and advisors.
Another amusing thread where all of us on a lot less than somebody else become righteous as if they wouldnt try and find loopholes to pay less tax IF they earned that kind of money. Sorry guys your living in a fantasy world if you think you'd not use loopholes earning mega bucks. Sanctimonious clap trap.
Yes employing your missus as either a b share holder or an employee will legally reduce your tax bill. A nice accountant can show you how. Charity begins at home.
This is abit of a daft thing to ssk on an open forum.
Get sn accountant if u dont have one already
A bit like trying stuff on in your LBS and buying it off the internet, eh Fred?
Yeah, exactly like that. Of course it is. Great so see what a fantastic grasp on reality you have, Labby.
No, he's decided that for legitimate business reasons he needs a secretary and is considering employing his wife in the role.
😆
You're just making crap up in your own head again, in't yer? In the folorn hope that if you shout about it enough, it might actually be true.
Dear oh dear oh dear... 😆
You're so good at autopwning that you do our work for us. So public spirited of you. 😀
X
spread the love.
Yes employing your missus as either a b share holder or an employee will legally reduce your tax bill.
From the link above...
Where a deduction is claimed for payment at the commercial rate in respect of substantial duties performed at premises away from the family home it is very likely that the deduction is allowable. Conversely, where payment at a non-commercial rate is made in respect of minor services performed at the family home a deduction is unlikely to be justified.
Shareholders are obviously entirely different, but the advice above appears to be pretty clear cut. Who knows what would happen if you were caught (and how likely is that?). Mate of mine did get caught evading tax when working in ROI. I think they gave him some choices, so he paid the arrears and a naughty tax on top 🙂
speak to an accountant and get some professional advise. It can be achieved I am sure and he should tell you what your other half needs to in order that she qualifies for this and then make a decision based on your circumstances and risk appetite.
TheArtistFormerlyKnownAsSTR - Member
Not really in the position to go Ltd at the moment, as I juggle my personal and business overdrafts when cash flow is slow - I would imagine this would get a bit tricky/messy as a Ltd co.
POSTED 10 HOURS AGO # REPORT-POST
Sounds like your finances are in a mess if you pay 40% tax yet have to juggle money, have personal and business overdrafts and don't think you are in a position to go Ltd.
Fast lie many lions.
This might have been mentioned, but despite the fact that i have been looking at STW on and off all day, I am [i]still[/i] reading this thread title as '[b]enjoying[/b] your spouse'.
Sounds like your finances are in a mess if you pay 40% tax yet have to juggle money, have personal and business overdrafts and don't think you are in a position to go Ltd.
A month or so before Christmas I was owed £54k. My finances aren't completely rosy, but could you stand that? Being in a financial mess and experiencing slow cash flow are completely different animals if you understand business in the slightest.
If your tax liability is that high then your profits are strong and you should have funds to cover emergencies.
The last time I was paying 40% tax I could have covered that comfortably.
Seriously - it sounds like you need to employ someone to advise on your finances, not employ a ghost position to 'save' tax - I think you would *actually* be better off.
IMO