New Accountant - advises against income splitting

[Maslins]

Maybe I missed the point but you didn't answer my question. Have you ever heard of HMRC challenging it? Or is this just one of those ghost stories accountants tell each other around the campfire when they get together?

Perhaps. I'm in the camp that it would take a particularly aggressive, and brave tax inspector to attempt to challenge an £8k salary paid to a spouse. The crux of their argument would need to be "we don't think your spouse is worth £8k/year".

Still, I don't think there's a right/wrong answer to this. Each accountant will at some point have to decide where they sit along the cautious/aggressive spectrum on a variety of matters. I don't agree that an accountant should be criticised for recommending against something that lots of other people do and "get away with it".

[WordIsBond]

Still, I don't think there's a right/wrong answer to this. Each accountant will at some point have to decide where they sit along the cautious/aggressive spectrum on a variety of matters. I don't agree that an accountant should be criticised for recommending against something that lots of other people do and "get away with it".

I agree. I'm not one of the people saying OP should get a new accountant. Maybe he should and maybe he shouldn't. It depends on how this advice was given.

If my accountant is cautious I want to hear his reasons. If he's out of line with what most people are doing I want him to admit it, and tell me why. I want him to make it clear what the law says and what the pitfalls are. But I certainly wouldn't dump him for giving cautious advice. I do want him to let me call the shots when something is not entirely clear, but I'll usually go with his advice even if I think it is overly cautious.

I'd be more concerned about the advice not to get a new mobile. Unless there's something OP isn't telling us about that, that one seems pretty straightforward. I'd really be pressing an accountant who gave me that advice.

[madame SasGuru]

My only comment would be if you think paying my wife £800 a month is a lot, it’s a lot cheaper than the £24k a year her replacement is about to cost me.

[MrButton]

New Accountant - advises against income splitting

OP. Are you claiming any other expenses?

If not is it not better to just go brolly?