Need help please

[flowersinthewind]

The personal allowance my hubby gets for me for the business he runs is it his income or mine ?
The accountant uses a personal allowance for me in my hubbies business it is something to do with getting the tax bill lower now does that become my hubbies income or mine. An a lady at tax credits says it is part of my hubbies income and not mine . I do not receive a wage slip a sum of money is transferred from husbands business account into a joint account this lady said it is still my husbands income and not mine when i explained all the account stuff. I have my my own part time job it is only 67.50 a week and our accountant said we will put £7498 in the accounts so that all your income is covered by the personal allowance and you won't have a tax liability. That is her words exactly can someone please explain to me as i feel this whole situation is making me feel uneasy.

They're pretending you work for the business and draw a wage of the remainder between your job and the personal allowance.

If you don't actually work those hours, you can't claim to do so to tax credits. The lady is saying that your DH us earning that income. She's right.

ok thank you , so when i ring and renew the credits why do they ask me how much i have earnt through self employment when it is my hubbies business

Because they have to ask you about all types of income regardless of if you have any earnings in that category. Otherwise someone could say 'well they didn't ask about that...'

If you don't get any self employed income, you say 'none'.

Thank you

i have just been told this You are being treated as a partner or joint sole trader - this is why your allowance is being used.
This is Eextremely worrying - because you must also be registered for Self Assessment to be receiving money from the business - did you sign an application to register for Self Assessment, if they are treating you as an employee then you MUST get a wage slip and a P60 at the end of the year.

There is nothing wrong with a spouse sharing the work and using their tax allowance but you should be fully informed. The woman at tax credits is an idiot, a fool and has given you bad advice. This income WILL be shown on the books as your income - this WILL affect your credits and may well produce an overpayment of tax credits which HMRC will claw back.

The accountant is fiddling but within the law - but YOU are now liable as you have told the Tax Credits you only have the part time work but at the end of the year the system will say you actually earned £10000. Talk to your husband and get this clarified -your tax allowance is being used to reduce his tax bill, again transfers between spouses carries no liability but if this is reported as your income you should damn well get it.
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if my allowance is being used surely i should be paying national insurance the voluntary bit only , as i have no pension or anything for the future.

If I was you I'd get my own accountant to look at this.