How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask James Mather Your Own Question
James Mather
James Mather,
Category: Immigration Law
Satisfied Customers: 0
Experience:  Senior Partner at Berkson Wallace
Type Your Immigration Law Question Here...
James Mather is online now

I writing to you regarding the employment rights of my wife,

Customer Question

I writing to you regarding the employment rights of my wife, who
is Bulgarian.

I m self employed and a UK accountant is currently in the process of completing my year end.

He has informed me that if I add my
wife as a shareholder, director and
employee I can save a substantial
amount of tax, which I think is a great idea, of course.

However my wife is Bulgaria, we have been married for 3 years and
have a 1 year old daughter who was born in the UK. My wife has also lived with me for approximately 5 years and is in the national Registar.

She has never formally applied for residency in the UK or a right to work.

she is registered in my address and has a national insurance number, although I think this may just be for medical grounds.

My accountant has asked for her a NI number and to confirm whether she is a resident in the UK.

So my question is this possible ?

Can I register my wife as a shareholder, employee and director over the past year.

1) Or did she have to officially apply for the right to work.

2) Does the fact that she has spent time overseas, mean she is not a resident and therefore it's not possible ?

3) officially the Bulgarian govt also paid her some maternity leave payment for some consultancy work
over the past year. This income will however be declared by my accountant.

I would be grateful for your help as I need to submit the details to my accountant within the next day or two.
Submitted: 4 years ago.
Category: Immigration Law
Expert:  JGM replied 4 years ago.
If your wife did in fact not do any work for your company then your accountant wants you to take part in a fraud. You should get further details from him as to exactly how his scheme would work before agreeing to it. You can't get tax relief on the basis of a non working spouse much as you would like this to happen.

You should find out how he proposes to save tax by appointing your wife a director or shareholder on a retrospective basis.

Happy to discuss further if you give me the detail of his scheme.