Sole Trader Income sharing

[romzes]

Hi guys,

I have two income sources - full time job where I'm working as an employee and own business - shop where I'm registered as a sole trader. My wife is running that shop. So I would say that my wife is doing not less than 90% of that business and only 10% me. My question is: Is it possible to share the income 10% / 90% or so between me and my wife? Cos' if I get 50% of all income I'll pay a huge tax...

One possible solution is to register Ltd and pay small salary to myself. But it's hard to do in my case because of retail unit lease contract. Hence one more question: is it possible to change somehow my name in that contract with my Ltd company(if I decide to create) without ceasing current and signing new contract?

Thanks a lot

 

[dahamsta]

If your wife is doing 90% of the work then of course you can give her 90% of the wages, just as long as you're paying PAYE and PRSI on it. You don't need a limited company, but you should consult an accountant about the best way to distribute the wages, and thus the tax credits.

You'll need to read the contract to check if that's allowed for, and if it's not covered in the contract you should talk to the leaseholder. If they say no, you should ask a solicitor.

 

[romzes]

Thank you very much