Crosswords1 min ago
Setting up a business
1 Answers
im about to set up a business providing call outs for plumbing, heating and gas emergencies between 6pm and 6am. The thing is, i work full time during the day for another company. My gross income is just short of the 40% tax bracket. My wife rents a property for around 8k per year. This is her only income. Any suggestions on how best to set it up, e.g. sole trader with 1 employee, ltd, partnership??
Answers
Only 1 answer
Best Answer
No best answer has yet been selected by lembo121. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
If your wife can do the 'administrative' work, and you share the family finances, there's no reason why you can't pay her a salary for that administrative work which would allow the family to benefit from that income with only 33% tax (22% income tax, 11% NIC) instead of the 41% (40% income tax 1% NIC).
On the other hand, I would suggest recruiting the services of an accountant to discuss the possibility of setting up a company with both you and your wife, and paying dividends instead of salary., since these are just 10% for the wife's "share" and 32�% for your 'share'
On the other hand, I would suggest recruiting the services of an accountant to discuss the possibility of setting up a company with both you and your wife, and paying dividends instead of salary., since these are just 10% for the wife's "share" and 32�% for your 'share'
Only 1 answer
