Secretary's Salary

[webkey]

Morning,

Hope you all had a good weekend?

My recent CT return for 2007/2008 had £5K down as the salary for my secretary, i.e. my missus.

She is also self-employed and is about to do her SA online, obviously she needs to declare the above £5K as other business income but as I didn't actually pay her this salary (am I meant to?) is this likely to cause her a problem re declaring an income that does not actually hit her business account?

Thanks,

David.

[DaveB]

Morning,

Hope you all had a good weekend?

My recent CT return for 2007/2008 had £5K down as the salary for my secretary, i.e. my missus.

She is also self-employed and is about to do her SA online, obviously she needs to declare the above £5K as other business income but as I didn't actually pay her this salary (am I meant to?) is this likely to cause her a problem re declaring an income that does not actually hit her business account?

Thanks,

David.

Come back Malvolio, all is forgiven!

/facepalm

If your company accounts show you paid her 5k then you need to pay her 5k. If you don't you get done for tax evaision.

[webkey]

Come back Malvolio, all is forgiven!

/facepalm

If your company accounts show you paid her 5k then you need to pay her 5k. If you don't you get done for tax evaision.

I can only mirror that /facepalm, hands up on this one and a firm kick up the backside.

Fortunately the missus had a quiet year on the artist side of things so that £5K was her only income so my accountant gave me the impression I should be okay on that front re her latest SA, hope he is right...

Thanks for the input.

Webkey

[dmini]

I might be being stupid- but what DID you do with the money - it obviously left the company in some form otherwise the books wouldnt have balanced!
Assumin it went to your account not an issue - as you are so closely related, could nominally have gone to her! - below tax / ni levels.
If it didnt and went somewhere completely different - you could be in issue.
Moral - you say in your accounts you pay someone - then flippin well do it! Payslips as well

[webkey]

I might be being stupid- but what DID you do with the money - it obviously left the company in some form otherwise the books wouldnt have balanced!
Assumin it went to your account not an issue - as you are so closely related, could nominally have gone to her! - below tax / ni levels.
If it didnt and went somewhere completely different - you could be in issue.
Moral - you say in your accounts you pay someone - then flippin well do it! Payslips as well

Of course, my accountant balanced and signed off my company books in 2008 so the £5K would have been buried in the payments (my min. salary and dividend) that go out of my biz account monthly and into our joint account...after this experience I can see the important of clarity with these payments moving forward, i.e. to create an extra salary standing order in the name of my missus which I'm sure she take full advantage of....

Webkey

[QwertyBerty]

It's not just a case of handing over the money to the supposed employee. You need to do all the PAYE stuff as well such as filling in a P11 and the P14 and P35 returns, even if no income tax or NIC is payable.

QB.

[webkey]

It's not just a case of handing over the money to the supposed employee. You need to do all the PAYE stuff as well such as filling in a P11 and the P14 and P35 returns, even if no income tax or NIC is payable.

QB.

Thanks for the input.

My accountant is on the case with that, mentioned that I should get this week a PAYE reference for my wife to use on her SA return.

wk