Tel: +44 (0)20 7588 3541 | Fax: +44 (0)20 7638 7099 | Email: info@westwakeprice.co.uk

Employing your Spouse

When considering the overall tax position of your family, it is worth considering employing your spouse in your business.

This is a means of transferring income from you to your spouse. It is likely to show a tax saving if your spouse has unused personal allowances or pays tax at a lower rate than you do.

In order to justify a salary, the following points must be borne in mind:

As well as a salary, you may be able to pay premiums for a special pension arrangement for your spouse. These should not be taxable on your spouse and should save you tax as a business expense.

All the above considerations apply equally to an unmarried partner or indeed to any other individual.

Administering a salary

If your spouse has no other employment, a Starter Checklist (available from https://www.gov.uk/government/publications/paye-starter-checklist) should be prepared with the Statement A (“This is my first job since last 6 April …”) ticked. You may then pay up to the Primary Threshold for employees' national insurance (£157 per week for 2017/18) without any further formality.

If you already have a PAYE scheme for other employees, or don't mind setting up a scheme for your spouse, you should consider the following points:

Please give us a call if there are any points you would like to discuss.

Online Registration

Why not register to receive our monthly newswire? Click here

Autumn Budget

View the latest budget report in full. Click here