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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am self employed and I pay my wife an allowance of about

Resolved Question:

I am self employed and I pay my wife an allowance of about 4000 a year, for admin work
Do I have to register her for paye or can I still pay her an allowance
My accountant told me I need to register her for paye but am not so sure as she earns under the tax threshold low earner he quoted me 200 pound a year to do this. Is he just trying to get more money from me
Tommy
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

You will need to register as an employer with HMRC if any of the following apply:
- you're paying them at or above the PAYE threshold
- you're paying them at or above the National Insurance Lower Earnings Limit
- the employee already has another job
- they are receiving a state, company or occupational pension
- you're providing them with employee benefits

As none of the above apply in your case, you can reflect the payment to your wife as an allowance.

More information on how and when you need to register as an employer here

http://www.hmrc.gov.uk/payerti/getting-started/register.htm

I hope this is helpful and answers your question.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes

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