Wife helps with a little admin work , can i pay her without her going self employed ?

[Kanga]

Hi All, first post. I am self employed with a 'cottage type business' just about makes a profit, may even have to pay tax this year (just)! Hi
My wife helps with a little admin work , about a 1 -1.5 hrs a day. she is a full time carer and apart from doing the hour for me she doesn't work. she is allowed to earn £100 a week without effecting her carers allowance and i would be paying her less than that anyway.
does she need to register as self employed for me to do this or do i need to register as employing someone? can her pay be taken off my taxable amount too?
anyone point me in the right direction for answers??
Many Thanks to All for taking the time to read this.
stay safe
Paul

 

[Scalloway]

If she has no other taxable income then you do not need to do anything other than pay her. She must be paid at least the National Minimum Wage. As she is a family member I don't think you need to take out Employers Liability Insurance. If she is doing a legitimate job it is an allowable deduction for tax.

 

[Kanga]

Thanks for taking the time to reply, thats very helpful. The carers allowance is the only income she has that is taxable but thats only about 3.5K per year so i can pay her say £10/hr (about £70 a week) thats just under 4K a year so the two together is less than her own tax allowance so that should be ok, i would transfer her 'wages' once a week/month and show the transfer as one of the expenses then.
Thanks again for the help.
Paul

 

[MyAccountantOnline]

Hi All, first post. I am self employed with a 'cottage type business' just about makes a profit, may even have to pay tax this year (just)! Hi
My wife helps with a little admin work , about a 1 -1.5 hrs a day. she is a full time carer and apart from doing the hour for me she doesn't work. she is allowed to earn £100 a week without effecting her carers allowance and i would be paying her less than that anyway.
does she need to register as self employed for me to do this or do i need to register as employing someone? can her pay be taken off my taxable amount too?
anyone point me in the right direction for answers??
Many Thanks to All for taking the time to read this.
stay safe
Paul

You cant decide whether your wife is employed or self-employed - it'll depend on the facts and arrangements between you. Have a read of this it should help https://www.gov.uk/employment-status/selfemployed-contractor

I suspect from what you've said she'll be employed. Her's another link for you that should help https://www.gov.uk/employing-staff

To answer your question 'can her pay be taken off my taxable amount' - yes if she's paid wages to work in your business it's like any other expense which is wholly and exclusively for business purposes - it reduces your profit and hence tax.

 

[Newchodge]

Get her to fill in the new starters form. https://www.gov.uk/government/publications/paye-starter-checklist

If she can tick A you can just pay her and keep a proper note of how much and when. If she ticks B or C or if you pay her more than £123 per week you will have to run payroll.