Sub contracting work to my wife

BaltanSeijin

Free Member
Sep 12, 2012
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I am registered self-employed working in web design and online marketing (ads on websites). This is in addition to my full time job.
One of my websites is related to Japanese language learning and is already making a profit. I want to add some more content and have it translated into Japanese. My wife is registered self employed as a Japanese translator so I want to get her to do it and pay her the going rate as a sub contractor. She doesn’t want to be a employee or partner as she is doing other translation work already.
This would be bonafide work that would hopefully eventually get me a ROI but would also have the welcome result in us paying less tax between us. I would be initially making less profit (until the new content brings extra visitors) and she would be paying less tax than I would have done on the money I’ve paid her
For this reason I’m wary that the HMRC might take a dim view although it would all be above board so I think I should be ok. Can anyone think of any problems or even better can confirm my optimism, and maybe has direct experience of this type of situation?
Thanks in advance for any advice
 
I am registered self-employed working in web design and online marketing (ads on websites). This is in addition to my full time job.
One of my websites is related to Japanese language learning and is already making a profit. I want to add some more content and have it translated into Japanese. My wife is registered self employed as a Japanese translator so I want to get her to do it and pay her the going rate as a sub contractor. She doesn’t want to be a employee or partner as she is doing other translation work already.
This would be bonafide work that would hopefully eventually get me a ROI but would also have the welcome result in us paying less tax between us. I would be initially making less profit (until the new content brings extra visitors) and she would be paying less tax than I would have done on the money I’ve paid her
For this reason I’m wary that the HMRC might take a dim view although it would all be above board so I think I should be ok. Can anyone think of any problems or even better can confirm my optimism, and maybe has direct experience of this type of situation?
Thanks in advance for any advice


I dont think of any issues here... you are a bonafide employer or contractor, who hiring an expert (albeit she being your wife) and paying her the industry standard salary...and depending on your both individual income you will be paying taxes, if any...

HMRC will not have any claims against this transaction...even if they have, you just need to prove that she is indeed an expert or the person who did this work and earned a salary.. ( please ensure that both file the necessary returns to HMRC in time)
 
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