dh was made redundant in March and so I have taken on a lot more work - probs putting me near the higher tax bracket. I was thinking of training him to do some of my less complex clients. If he registered as s/emp - could he invoice me and I pay him some of my fees? ie using up his tax allowance?
if you make him an employee you can pay him around £7500 and it will be tax free (for him) and it can offset against your profit this is what we do you will have to set up a PAYE but if you have an accountant they can do that for you
PAYE will be favourite. If he invoices you he will need to be invoicing other people - if you are the only person he works for HMRC will deem you to be his employer and that you are 'responsible' for him. As I understand it.
if he's PAYE, you can pay him 675 a month with no ERS NI this year and next year when the £2000 ERS NI discount kicks in for small businesses you can pay him right up to the NI limit of £7745 with nil RTI returns