Is this legal? Wife not paid directly...

[TSM]

Just a quick question...I was chatting to a guy I do business with he has a LTD company with 2 directors.. Himself and a friend who runs the overseas office in Canada. He was telling me his wife runs the UK office doing calls , admin etc and works 6-8 hrs a day. However he does not pay his wife anything...instead he takes the salary she would earn and adds it to his wage bill. Money is then paid into their joint back account...I didn't really grasp why he would do this? I know she claims benefits for disability...so is this legit or is illegal?
Thanks
Nick.

[Sausage Surprise]

[Sockpuppet]

Just a quick question...I was chatting to a guy I do business with he has a LTD company with 2 directors.. Himself and a friend who runs the overseas office in Canada. He was telling me his wife runs the UK office doing calls , admin etc and works 6-8 hrs a day. However he does not pay his wife anything...instead he takes the salary she would earn and adds it to his wage bill. Money is then paid into their joint back account...I didn't really grasp why he would do this? I know she claims benefits for disability...so is this legit or is illegal?
Thanks
Nick.

Without knowing the details it could be completely legal if you're that worried ask the benefits office to look into them.

[Jessica@WhiteFieldTax]

Without knowing the details it could be completely legal if you're that worried ask the benefits office to look into them.

WSPS

[SueEllen]

People who are working get disability benefits as the point is to pay them the extra costs of going to work and getting around that an able person doesn't have such as taking taxis as they cannot see bus numbers, costs of a guide dog , costs of running a mobility car.

So unless you know exactly what benefits the disabled wife is getting don't bother sticking your nose in as the benefits fraud line gets lots of calls about disabled people getting benefits they are entitled to.

[VectraMan]

If what you're saying is that she properly pays tax and her income is recorded through PAYE, but that to save a little bit of effort they make one payment to their joint bank account instead of two, then I don't see there's any problem with that.

[TSM]

Thanks for the comments. She is not PAYE, there is no record of her working at all on paper. I was more intrigued as to why a company would do this more than contacting a hotline. She has disability payments apparently because when she was 3 years old she had an op on her legs as they were not quite straight. She was in traction for 6 months or so...She now walks fine, albeit with a slight wonky movement...she even enjoys hill walking. I know she has a disabled badge and mobility scheme car...maybe it has to do with that?

[jmo21]

If what you're saying is that she properly pays tax and her income is recorded through PAYE, but that to save a little bit of effort they make one payment to their joint bank account instead of two, then I don't see there's any problem with that.

He is clearly not saying that at all and they are cheating the benefit system by making it appear she is unemployed

[ASB]

Just a quick question...I was chatting to a guy I do business with he has a LTD company with 2 directors.. Himself and a friend who runs the overseas office in Canada. He was telling me his wife runs the UK office doing calls , admin etc and works 6-8 hrs a day. However he does not pay his wife anything...instead he takes the salary she would earn and adds it to his wage bill. Money is then paid into their joint back account...I didn't really grasp why he would do this? I know she claims benefits for disability...so is this legit or is illegal?
Thanks
Nick.

It is illegal. She has to be paid NMW. Unless she is a director with no employment contract.

It is also incredibly stupid. In effect it would appear he is paying tax on an amount equivalent to her personal allowance unnecessarily.

As to the benefits angle who knows. Depends an the overall circumstances.

[Jessica@WhiteFieldTax]

It is illegal. She has to be paid NMW. Unless she is a director with no employment contract.

It is also incredibly stupid. In effect it would appear he is paying tax on an amount equivalent to her personal allowance unnecessarily.

I'm fairly certain (as in very) that close daily relationships are NMW exempt like non contract directorships.

I don't think, without full knowedge, we can judge stupidity V savviness. There is often more than meets the eye.