Can declare myself self-employed and invoice dh?

[MuddlingThru]

DH has a rental property. This year as interest rates have been so low it will make a profit. Previously we have re-invested any profit but this year we could really do with taking the profit. As a SAHM my earnings this year have been £0. Could I declare myself self-employed and then invoice dh for 'letting management services' so that effectively the profit would transfer across to me and would then no longer incur tax because of my lack of earnings elsewhere?

Yes, you can - do you actually carry out this service?

Yes I do all the day to day stuff - making sure insurance is renewed, getting the annual gas check, checking rent is paid, etc...

I don't thnk strictly speaking this would come under being self-employed unless you have other clients as well.

However you do seem to fit the criteria for being an employee.

I believe so. If you can't, please tell me as I do this! I used to have more clients, but have only had DH to invoice the past 6 months. For me, each invoice states the exact work done on what date, how long it took me to complete the work, and my hourly rate.

I pay my NI by direct debit as being self-employed. And I pay an accountant to make sure that I'm not making any huge mistakes. The amounts of money involved with DH and I are tiny (hundreds of pounds per year, not thousands).

I think you are more likely to be an employee. This from the IR website - I think the second last point (Do you regularly work for a number of people) is the one they are catching people out on - a bit IR35-ish:

As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

Do they have to do the work themselves?
Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
Can they work a set amount of hours?
Can someone move them from task to task?
Are they paid by the hour, week, or month?
Can they get overtime pay or bonus payment?
If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:

Can they hire someone to do the work or engage helpers at their own expense?
Do they risk their own money?
Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
Do they agree to do a job for a fixed price regardless of how long the job may take?
Can they decide what work to do, how and when to do the work and where to provide the services?
Do they regularly work for a number of different people?
Do they have to correct unsatisfactory work in their own time and at their own expense?

You would be an employee of the lettings business. However if your total income were less than the Lower Earnings Limit (currently £95/week) you would not be required to register with HMRC.

Your DH can pay you a salary as an employee of his business rather than you becoming self employed (yuou would need to set up a company to do that and pay for the setting up etc). Plus as a self employed person there are new rules now so that you cant only work for one person or you are no longer classed as self employed and have higher tax etc applied.

You don't have to be a limited company to have employees any business can have employees.

So I just phoned HMRC panicking after reading other people's replies to this thread, and they told me that I should continue as self-employed, invoice DH for work done if I do any. Obviously I'll work for other clients if possible but if I don't get any other clients I won't be in breach of anything apparently. The lady said that in my case it was partly because of the amounts involved being so small (both DH and I are under the threshold for income tax). She said that as long as I'm keeping my receipts and do a tax return for the coming year, I'm not breaking any rules.