Can I not take salary and still pay wife ?

[MeIsMark]

Is it legal for me to pay my wife a salary from my new Ltd... while not taking a salary myself ? (Both directors, she has unused tax allowance) ? or will HMRC class it as disguised emuneration or something ?

Thanks!

[ladymuck]

You don't have to take a salary. What does your wife do for the company that justifies her salary?

You're already making it clear that the purpose of paying her is to extract cash while paying minimal tax.

[eek]

You don't have to take a salary. What does your wife do for the company that justifies her salary?

You're already making it clear that the purpose of paying her is to extract cash while paying minimal tax.

+1 Salary should be paid for the work done - if she actually isn't doing any work she shouldn't be paid.

[LondonManc]

Agree with both above. When I was contracting Mrs LM dealt with all post, was key contact for accountants, handled, expenses, cleaned the office, etc.

[MeIsMark]

Ok... She is listed as 'account manager'..... should be ok I guess ?

[eek]

Ok... She is listed as 'account manager'..... should be ok I guess ?

But what actual work does she do?

[jayn200]

Ok... She is listed as 'account manager'..... should be ok I guess ?

When you have some kind of review/audit you need to be more convincing than that.

[WTFH]

As a side question, is this for the new company you have recently set up (as per previous posts)?
https://www.contractoruk.com/forums/...t=#post2808105

And is it doing a similar line of work to your previous company that you closed in 2019?
https://www.contractoruk.com/forums/...t=#post2746131

[Lance]

Is it legal for me to pay my wife a salary from my new Ltd... while not taking a salary myself ? (Both directors, she has unused tax allowance) ? or will HMRC class it as disguised emuneration or something ?

Thanks!

It's perfectly legal to pay your wife whilst not taking a salary.
If HMRC don't like it and charge you more tax it's still 'legal'.

You probably want to forget about the legalities and think more about whether she's earned it. And the plausibility of her earning it.

Why have you not taken a salary? Are you a permie? If so then maybe you have reasons in that the wife runs the company. You could have even resigned your directorship, or otherwise formally stepped down as an 'employee' leaving your wife to handle all company affairs.
In fact if she was asking the question about paying herself as a director rather than you as you're doing f*** all this year it would be far more plausible.

EDIT: I've read the other posts you made now. Forget it. There is no plausible reason why you are the only fee earner and she takes the only salary.

[Paralytic]

My guess: OP is moving to Perm or Umbrella and wants to use some of the warchest in ltd company to pay wife salary up to lower tax threshold.