Tax allowances

[baileyman]

I am a decorator over the age of 65 and now working part time. My state pension and a small private pension take up nearly all of my 9940 allowance.
My wife helps me occasionally, without pay. She has about £2000 spare allowance.
Can I write her a cheque for say £1500 as wages earned during the year, thereby reducing my tax liability?
Will she need to complete a tax return, her total will be well below 9940

[maclarencat]

Does her money come from a pension or earnings How old is she ? There may be NI implications and yes she would then have to declare her income on a tax return

[baileyman]

Thanks maclarencat, her income is from state pension and small pension from work. No NI she over 65.

Even if I pay her say 1500 she will be below 9490 so will not owe any tax, but from what you say, will have to complete a tax return.

[maclarencat]

Sorry I havent been back but I have had familly visiting. Its what happens when the sun shines and you live at the coast! She would need to fill in a tax return but it is very easy to do . Dont be put off. Give your tax office a ring tell them you are thinking of employing her on a partime basis and ask what the implications are. They are usually very helpful

[gingejbee]

Enquiries like this will be answered well by the Tax Helpline 0845 300 0627 (8am to 8pm)- run by HMRC.