National insurance help and tax

[goodmanners]

Hope someone knowledgeable can help me, dh is starting up a small internet shop, as his annual salary is more likely to eventually hit the 40% tax mark he said best to put thebusiness in my name. I work part time and also have a small internet business but earn under the threshold for my business to pay the Ni (i have like an expemption thigymabob), so my business and dh's which will be in my name will be kept entirely seperate and his will also probs stay under NI threshold - if both combined go over do i have to pay it or are they treat seperatly? Sorry im confused now and wondering do i really want it in my name. What is the 40% tax level anyway and is it just onthe bit over it? Hope you understand my post.

All your income is combined for tax & NI purposes. Includes unearned as well as earned... eg. interest on savings, dividends on shares. Can highly recommend this http://www.hmrc.gov.uk/incometax/basics.htm HMRC website for comprehensive info

40% tax is payable on everything you earn over £37,401 up to £150,000 when it goes to 50%. The first £2,400 you earn is tax free (unless it's income from savings or you have any job-related perks). Between £2,400 and £37,400 and you pay 20% tax.

It's worth doing the maths to see if you'd be better off with you declaring the new shop as your income or if he declares it as his.

HMRC website

ok well if his salary is £29k its ulikely to go over the £37k in the next 2 years - when it does is it straight forward enough to change ownership? hes already set up the paypal and ebay account in my name btu the business bank accounts in his - i think hes a numpty as he is radging me now.

ok then another one.... if i was to put it in mine name does it matter that his business bank account is in his name (he isnt alan sugar and he isnt about to do something illegal or run of beleive me).

Chil1234. I think you are wrong when you say that the first £2,400 which you earn is tax free, surely it is something like £6000 currently.

I think if you don't want to have too many awkward questions from HMRC you should be extremely consistent about the name on any documentation, bank accounts, invoices and so forth - and then stick with it. I would also recommend talking to an accountant because there is a fine line between being tax efficient (legal) and being guilty of tax evasion (illegal).

The tax free personal allowance is £6475. It's a different limit for National Insurance and if you are running 2 businesses your exemption won't apply.

i just want it to be as striaght forward as possible to be honest. I am scared of tax man so am very uber efficient with my paperwork and probably over honest. I will get dh to ring up his bank i think and change the name on it and just go with it all being in my name. You never know this one may turn out to be more profitable than mine lol!

Thanks elvis - were a complicated household as dh has another v small business also and whoever takes this one on will probably go over the ni threshold thingy it probably more about the tax now.

Thans chil and lucinda also obiously . sorry musnt forget me manners!

Personal allowance is £6475, my mistake sorry.