- Original Poster
- #1
I know this has probably been asked in slightly different circumstances 100 times on here, but I really would like someone's help.
I work full-time and I am a higher rate tax payer (on £60k) but I have had a recent business opportunity which should help out with the family income (its just me and my wife with a kid on the way in November).
In short, I would expect to be charging say £1,000 a month, with about £800 of that being profit for after some government fees for the work I do. They are non VATable processing fees. Much of the work does not require any high end experience. As I work fulltime, my wife (as she is not working) will do most of the calling and admin work for me. She is of course happy to do so before anyone claims its slavery!
I do not want the hassle of VAT registration, NI payments if I can avoid it (I am not expecting more than say £10-£15,000 per year from this, it's a one day a week job). So if we were to decide to be a partnership, and say, make £10,000 profit as a partnership, I realise that that would be taxed at 40% for me, and 0% (inside her personal allowance) then 20% - is there a way to proportion (favourably) the profits to my wife, seeing as she is a lower rate tax payer? This is nothing "dodgy" - she will be doing 80% of the work. I do not see why I should be paying at 40% if she is the one doing much of the leg work involved.
Does anyone have suggestions? Could she simply operate as a sole trader instead perhaps?
I really appreciate any help anyone can offer, or pointing me in the right direction of a tax accountant...
I work full-time and I am a higher rate tax payer (on £60k) but I have had a recent business opportunity which should help out with the family income (its just me and my wife with a kid on the way in November).
In short, I would expect to be charging say £1,000 a month, with about £800 of that being profit for after some government fees for the work I do. They are non VATable processing fees. Much of the work does not require any high end experience. As I work fulltime, my wife (as she is not working) will do most of the calling and admin work for me. She is of course happy to do so before anyone claims its slavery!
I do not want the hassle of VAT registration, NI payments if I can avoid it (I am not expecting more than say £10-£15,000 per year from this, it's a one day a week job). So if we were to decide to be a partnership, and say, make £10,000 profit as a partnership, I realise that that would be taxed at 40% for me, and 0% (inside her personal allowance) then 20% - is there a way to proportion (favourably) the profits to my wife, seeing as she is a lower rate tax payer? This is nothing "dodgy" - she will be doing 80% of the work. I do not see why I should be paying at 40% if she is the one doing much of the leg work involved.
Does anyone have suggestions? Could she simply operate as a sole trader instead perhaps?
I really appreciate any help anyone can offer, or pointing me in the right direction of a tax accountant...
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