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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a retired Naval officer whose main income is a military

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I am a retired Naval officer whose main income is a military pension plus the state pension. Both of these (which amount to around £30k) are taxed at source by the military pension provider. Last year I earned an additional £8k working as an independent contractor teaching people to drive powerboats. My wife is retired but does do my paperwork/work schedules etc. Can I legitimately pay her a salary which I could offset against my self assessment tax bill? I am 69 years of age and she is 66. She draws her sate pension but is of course entitled to a £10k tax free allowance.
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.There is no reason why you can't pay your wife a salary for secretarial and admin support.You only have to register your business as an employer for PAYE purposes if you will be paying any employee £112 or more a week. As your wife is in receipt of a state pension, you should register as an employer and pay her under PAYE scheme.If you keep the salary at a level before her unused personal allowance, there would be no income tax/NI deductible.More information on registering as an employer can be found herehttps://www.gov.uk/register-employer/y/no/yes/no/sole-trader/yes
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Expert:  taxadvisor.uk replied 1 year ago.
If you keep the salary at a level before her unused personal allowance, there would be no income tax/NI deductible.
should read
If you keep the salary at a level below her unused personal allowance, there would be no income tax/NI deductible.
Many thanks
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Your reward of a generous bonus is greatly appreciated.
Best wishes

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