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Original poster

DH paying me to do admin for his business?

17 replies

Aelfrith · 28/01/2014 20:14

DH is a sole trader. He wants me to do some admin regularly for him, and will pay me. How can we record this properly so it doesn't look like a tax dodge? (Ie him paying me only so he can reduce his 'profit' for tax). He is genuinely paying me for my time/skills.

OP posts:
HorsePetal · 28/01/2014 21:45

Its not a tax dodge at all. He can legitimately employ you - you really don't need to worry.

I have employed my own children before now plus other family members. I run my own business and there is always a ton of admin to do so if I can keep the wages/money in the family than its great Smile

I don't think you even need to have a contract drawn up as a verbal contract will do but it might be worth getting one just incase.

Will you be liable for Tax or NI?

HorsePetal · 28/01/2014 21:47

How does he record the rest of his business outgoings? We do ours on an excel spreadsheet and I have a column for wages.

Original poster
Aelfrith · 28/01/2014 21:52

No I will earn under the tax threshold. Don't know about NI...

As for the rest of his business outgoings he just keeps receipts etc and then periodically puts them on a spread sheet. It's a bit random....hence me taking it over!

His accountant said it must be done properly...ie real wages paid to me from his business account, into a separate account that I have sole control of.

Thanks for answering....I am in panic!

OP posts:
Sam100 · 28/01/2014 21:59

As long as he complies with employment law - pays at least minimum wage etc! Can even set up a childcare voucher scheme if he pays you enough!! Remind him that you would also need holiday pay Wink

HorsePetal · 28/01/2014 22:00

Dont panic, its honestly fine :)

So get DH to add a separate column on the spreadsheet for wages (for you).

If you are not liable for Tax and NI then he can just put together his own payslip for you.

If you do have to have tax or ni deducted (look at the thresholds online) then he can either get a payroll company to do it for him or he can do it himself using the HMRC download.

If you have no other form of income yourself (pension, mat pay) or have had no other employment since last April AND you are below the earnings limit with your DHs company, than you won't need to pay tax or NI.

Agree with what accountant has said about a separate account though. Set up your own account as soon as you can in your name. You can always transfer it back into joint account f you want to. So long as it is paid into your account initially.

Stop panicking, you are not doing anything wrong at all.

HorsePetal · 28/01/2014 22:01

Absolutely to holiday pay :)

You might also want to consider setting up a pension scheme and asking your DH to pay into it. Very tax efficient for both of you

HorsePetal · 28/01/2014 22:03

And he can spend around £50 on a christmas pressie for you and claim it as a business expense plus occasional lunch out with his employee Grin

Original poster
Aelfrith · 28/01/2014 22:27

Thanks really appreciate all the advice!

OP posts:
CommsWhizz · 29/01/2014 11:40

I'm reading this with interest. My lovely, lovely mum carries out lots of ad hoc work stuff for me which I pay her with meals or flowers or gestures and gifts, as it hadn't even occurred to me that I could be paying for any of it.

Something we've taken a hit on since I left my last job is the childcare vouchers as my husband's work won't have them and as a sole trader, I can't have them. I realise it's a bit of a fiddle, but could I potentially pay Mum and set her up with those too?

Feeling very naughty now for even raising the questions - feel free to shoot me down in flames!
CW

HorsePetal · 29/01/2014 18:43

Hi - what do you mean 'set her up with those too'?

I'm confused Grin

What work does your mum do for you? Admin? Childcare? Or something else?

WoodBurnerBabe · 29/01/2014 18:50

Your Mum can't get childcare vouchers as she doesn't have PR for a child using registered childcare, sorry...

caroldecker · 29/01/2014 20:02

cw

could pay hubby to work in the evenings though and get the vouchers

behindthetimes · 17/02/2014 20:23

My husband does this too, we looked into it and as far as we could see we didn't need to do anything other than include it in the spreadsheet we use to record our expenses.

Picturesinthefirelight · 17/02/2014 20:31

You need to sign a P46 form which is kept in a safe place.

Then work out what you can be paid before being liable for tax or national insurance to avoid having to run a PAYE scheme.

HenriettaTurkey · 25/02/2014 22:18

We are renting out my house. When DH & I married I moved in with him & it covers our rent & a little. DH does most of the work relating to it- drawing up tenant contracts, sorting out repairs & renewing gas cert etc. As SAHD his earnings are non-existent. Could I really pay him & also pay into a pension for him for this?

morethanpotatoprints · 25/02/2014 22:25

Hello,

My dh sometimes employs me but it is a bit more complicated for us as it is never a permanent thing.
Our accountant does all the tax stuff, I do general book keeping.
My wages go into my account by dd out of the business account when I'm being paid.
As long as you can account for it, it doesn't matter where it goes. I mean it can be your normal current account, like any other wages would be paid in.

Henrietta.
I suppose he could if you were employing him, running it like a property developer or something. I'm pretty certain it would have to be a business.

HenriettaTurkey · 26/02/2014 13:42

Hmm...that's a bit more complex as it's the only property we rent out. Could he just fill the tax form in in his name as landlord? Does it matter that my name are on the deeds we are married& he does all the house stuff?

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