NEW BUSINESS - "Hobby"

[00jamie00]

Hi

I am hoping for some advice and would appreciate any given.

Background : I am a higher rate tax payer currently employed full time and paid through PAYE from my employer.

Last year I started to photograph a few friends weddings and long story short I am now doing a few a year - paid. This "side" hobby / job will not earn more than maybe £8000 a year.

I have a wife at home - stay at home mum who is not using any of her tax allowances.

I want to declare this extra income correctly but am unsure of the most efficient way.

Do I register as self employed and declare my additional earnings - or can I declare all in my wife's name and use her allowance?

Could I "employ" her and ensure zero profits from my side but she gets paid but no more than her allowance etc - she is a graphic designer by trade and does edit my pictures and helps with diaries and planning etc ?

Any advice would be appreciated - thanks.

[SteLacca]

Yes, you need to register for self-assessment because you have income not taxed at source. You can't claim that your income is your wife's top avoid tax (that would be evasion, and so illegal).

Whilst you could employ your wife, if HMRC were to question the engagement you would have to be able to demonstrate that the employment is not artificial and that the wage paid is commensurate with her duties. You would also have the additional PAYE compliance to consider.