Being asked to add partner payments to my tax return

[Catscoffeeandsleep]

I’m looking for some advice because I’m feeling unsure about something that’s come up while doing my tax return.

This year my income is very low as I was mostly at home caring for my daughter. She was only in nursery two mornings a week, and during that time my partner gave me some money while I wasn’t working much. I also did a small amount of self-employed cleaning work.

While I was doing my tax return, my partner was hovering behind me, offering to help me as it was my first tax return (which is unlike him), I said no, it's okay, he then asked how much I had made, which is strange as he is very separate when it comes to finances, I don't have access or no much about his incomes but I do know that he earns very well and has a lot in savings. He then suggested I should include all the money he’s given me as income, as if he was paying me. He’s said this would reduce the amount he owes. He said that all wives do this, he's helped me out and he paid £5000 for my car (mine was unsafe to drive) which has eaten into his account.

I’m confused because the money was support while I was doing childcare and running the household, not wages for a job. I know that the he has supported me financially for a few years whilst raising our daughter. I earn more now and pay for myself.

I’d really appreciate advice on this situation as it's made me feel a bit uncomfortable.

I assume that you are not in the UK? This scenario would not work with HMRC.

As an accountant, no.

He's talking crap. Also, leave him, he sounds horrible.

you should marry him or leave him

OP

re your comment:

"I don't have access or no much about his incomes but I do know that he earns very well and has a lot in savings. He then suggested I should include all the money he’s given me as income, as if he was paying me. He’s said this would reduce the amount he owes. He said that all wives do this, he's helped me out and he paid £5000 for my car (mine was unsafe to drive) which has eaten into his account".

Are you his wife or his partner?. I presume the former. And did you tell him how much you made?.

How is it you have no access to or even know very much about his income?. Has he made you ask for money from him before now in the event you've gone short?. If so this is controlling behaviour from him and thus abusive.

He is being an arse here re your tax return. Such a change in behaviour from him was rightly regarded by you as suspicious. He is not normally this bloody helpful is he?.

And you are with this man because...

He's also no decent example of a father to his child either.

No. It's his earnings. What he gives you is a family arrangement and not taxable on you.

hes looking to avoid tax.

no

that isn’t how it works (England)

No, it’s fraudulent. Also, it sounds like he doesn’t really think of you as a team and that’s a problem.

Does he run his own business? Is he putting you on his payroll without you knowing and needs your return to show that? It's all dodgy as hell just trying to see the logic.

he is very separate when it comes to finances

And you're unmarried
You don't know how much he earns
And now he's suggesting you commit tax fraud (a criminal offense)

None of this bodes well for your future. I would get yourself back to work ASAP. You cannot afford to take a hit on your earning potential without the legal protection of marriage.

All that aside are you his wife legally?

I have now realised who he is. This is indeed the prince amongst men who left you and your child behind whilst he went to some sporting competition in Italy knowing how much it was a dream of yours to visit there!.

And now he looking to manipulate your own tax return to avoid tax on his earnings!.

Many self employed people legitimately put their partner down on payroll with a title like secretary or assistant. However HMRC may require evidence that the person concerned is actually earning a salary or wage. This would involve issuing a pay slip and deducting NI etc. Paying you money for household expenses is not the same thing.

However if you yourself have legitimate earnings from self employment you should enter that income, even if the amount is too low on which to pay tax. If you have several sources of income there is space on the form to explain this.

No, don't do it!

I do this supported by my accountant. You can pay someone £100 pw without becoming an ‘employer’ and registering for NI etc. It comes out as an expense for me and as income on his tax return. But I could point to legit things that he does for that pay if anyone asked.

The money wasn't a wage, he's not your employer. Basically he's trying to cheat the tax office, it's tax fraud and it's illegal.

Yes someone could pay you for a couple of hours a week as a casual assistant doing (say) cleaning/packing or similar work without deducting NI. And s/he could claim it as a business expense because you were doing the actual work for the wage.

Tax evasion refers to the illegal act of deliberately avoiding tax payments by concealing income, inflating expenses, or underreporting financial details.

No it’s not ok. He is in the ‘inflating expenses’ part of tax evasion…..

Which would be covered under some sort of contractual agreement ans depending on the hours per year require Employees NI and Pension contributions to be made.

thats not what he’s doing here. And he knows it.

Are you married?

No, definitely not. And leave him

No, you should absolutely not do this! He’s a complete moron.

He is sending you money for what is essentially joint household expenses. This is not income and you sure as hell do not want to be paying taxes on this (again, because it’s not income and not taxable!).

Dh (well, Dh’s company) sends me money every month and I pay taxes on this, because I’m a co-director and these are my dividend payments as earnings through my directorship with the company.

But no, I do not pay taxes on money dh contributes to childcare and our household expenses (he does, as he should because it’s his income).

Tell him of course this sounds like a brilliant idea for next year , but also make it official via paye and do his book keeping, invoincing ect for him because hmrc need to see realistic evidence of what you're being paid for. Should also ask if any dividends have been declared to you😏

What country are you in?
Don't get tax advice from him or from Mumsnet.
Ask an accountant or your tax department.

If you are married then his money is your money anyway so he shouldn't be giving you an allowance to look after his child, he should be sharing the money he earns eirh you as joint income. I. E. Covering all the bills if you are not earning and giving you access to the other money for buying things that you and your child need.
If you are married then you can give him some tax allowance via self assessment but it isn't much.