DoingMyBest
Registered User
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I am a full time PAYE worker. My wife has worked part time since 2006. I earn around 60k a year. Her earnings vary but they are around 10k a year after expenses. My wife paid no tax or PRSI since she started part time work. We went to an accountant to fix this up. We agreed to let our accountant act as our tax agent. Our accountant suggested that we assess jointly for tax, and that I should set myself up as my wife's employer. This would bring us into the lower tax band. We have received a large tax refund as a result of this. Our accountant has charged us a lot of money for this service. We have had to pay him up front in advance of any refund, which has been difficult for us.
I have a few worries. My wife has not been set up as having paid any PRSI and now comes in under class M. I would have preferred her to be set up under class S PRSI. I think my accountant is looking to make as much money as possible out of us and that is why he is doing things the way he is. Would it be easy for my wife just to do her own books in future and forget about this complicated arrangement ? We are afraid of a tax audit down the line. I also want to make sure that my wife pays PRSI so that she can get a pension down the line.
What would you do in my situation ?
I have a few worries. My wife has not been set up as having paid any PRSI and now comes in under class M. I would have preferred her to be set up under class S PRSI. I think my accountant is looking to make as much money as possible out of us and that is why he is doing things the way he is. Would it be easy for my wife just to do her own books in future and forget about this complicated arrangement ? We are afraid of a tax audit down the line. I also want to make sure that my wife pays PRSI so that she can get a pension down the line.
What would you do in my situation ?