Self-employed, work for husband

[LovelyBath77]

Husband is self employed and quite busy and could do with some help.

Does anyone else work self-employed with / for their partner, i wondered if it might help with tax? And would you do two tax returns. Thanks.

I used to but I was also self employed in my own right with my own business so didn't pay myself from dh's business.

There are a few things to think about.

To be genuinely self employed yo would need to either become a Partner in his business if he is currently a sole trader, or you would need to become a Director of his limited company.

Otherwise your dh would have to employ you & possibly run a PAYE system depending on how much you are going to earn. The best thing to do in this case would be to pay yourself at just under the Lower Earnings Limit of £113 per week.

Paying yourself would utilise your tax allowance butvitcmust be genuine e.g. You need to show you are doing some work or else it's just a tax dodge.

Yes, I see. Yes he does need the help, as really busy. Thanks.

I am on cont based ESA at the moment for health reasons and also PIP. I just ran the situation through the tax credits calculator and looks like would be better off if I was in work, that staying on the ESA. They seem to add something for people moving off ESA int work, I think.

However tax credits will be universal credit in a few years so not sure.

I have no experience with tax credits or other benefits I'm afraid. All I know is that to have an employee & not run a PAYE scheme (which has cost implications of employers national insurance) the employer has to earn under £113 per week & have no other taxable income.

Thanks for your help, it is useful.

Why would OP have to be a director of the company? If it's just help as and when he's busy on an irregular basis, the OP could be classed as a freelancer or contractor. She would agree an hourly rate with her husband, and invoice the company for any work she does. She would be paid in full and would manage her own tax and NI by becoming self-employed.

If however she is doing set hours on a permanent basis, she's an employee and yes would have to go through the payroll.