Hello everyone. I am a sole trader as well as paye worker on over 42k so the tax on my sole trader is very high, at least 40% after expenses. Say I make 10k clear profit per year as sole trader can i pay my unemployed wife 5k (which means no prsi to pay) to do the invoicing and bookkeeping and then only pay tax on 5k. If this is correct then what else do I have to do when paying the wife if no prsi is involved, eill i be out any more money than the 5k (even though it goes back into the family income)
sole trader employing wife question
- Thread starter sean01
- Start date
Unbelieveable in this day and age.
One minute you are paying her, then you're not because she won't know anything about it, but its all ok because it will go back into the family income
My, my, would she get a shock if revenue wrote to her at some stage.
One minute you are paying her, then you're not because she won't know anything about it, but its all ok because it will go back into the family income
My, my, would she get a shock if revenue wrote to her at some stage.
J
Jon Snow
Guest
Well your best option would be to do things properly; if she's doing work for you, pay her.
If she isn't, it's all your income.
to answer your question yes you can employ her. Make sure you run it through PAYE and class M is the appropriate rate if she pays no contribution. Even if emergency tax is operated it should be refunded on filing a tax return.
Without knowing the answer check out the situation regarding employment of a spouse - I do recall reading somewhere that there was a change recently whereby some spouses in employment are Class A.
Without knowing the answer check out the situation regarding employment of a spouse - I do recall reading somewhere that there was a change recently whereby some spouses in employment are Class A.
T McGibney
Registered User
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- 6,783
If it's a genuine partnership, there's no problem. But she'd need to be taking an active and reasonably credible role in the business for that to hold.