Yes, he can pay her up to £110 a week, if justified by the work she actually does, without having to register for a PAYE scheme. It has always been the case that if someone is paid below the NI Lower Earnings Limit and has no other job, they are not subject to PAYE.
Do I need to inform HMRC If I pay my wife a small salary?
A reader asks if he needs to inform the authorities if he wants to pay his wife a small salary for ‘administrative’ work done for his company. The question has been answered by James Poyser Your wife is not required to notify HMRC about the wage as long as it is her only source of Income and no unpaid tax will arise.
Why do I need to pay my wife a small salary?
For an incorporated business (limited company), HMRC would require that a PAYE scheme is in place and therefore a P35 and P14’s are submitted each year and this would include the wife wages even though no deductions may have been made. This is because they would want to know that no other benefits were being made available.
Do you have to pay your wife if she’s self employed?
Secondly, whether she’s employed or self employed is a matter of HMRC rules, not your choice. Unless she has other clients, uses her own equipment, etc., she’s unlikely to pass the “self employment” test and would therefore be your employee.
Do you have to register with HMRC if your wife is self employed?
Unless she has other clients, uses her own equipment, etc., she’s unlikely to pass the “self employment” test and would therefore be your employee. You’d then have to register as an employer and make submissions to HMRC every payday.
Do you want to be a self employed consultant?
Well, the answer is simple – a consultant consults. The answer, though true in its basic sense, is much too vague. If you want to become a self-employed consultant, you need to have a better idea about the business and the way to set it up.
Can a spouse work in a business as an employee?
If you have a spouse who wants to help out and you have enough money coming in from the business and other sources, it might be tempting to have the spouse work in the business but not as an employee.
