Paying salary to my wife

by **BlueSheep** on Tue Jan 25, 2011 10:35 pm

Hi All

My wife assists me in my technology related work. In order to reduce my taxable income I would like to pay her £5000 per anum. Do I need open a bank account for her and also apply for her N.I. number?

Is there any other way I can pay her the annual salaryt?

Regards

by **nimbostar** on Tue Jan 25, 2011 10:51 pm

Hi

I don't think there is a need to open a Bank account, however she will need to have an NI number and a tax code, so long as you can produce payslips and a (P60 at the end of the tax year) to show that you are paying her for the work she is doing.

by **RAL** on Tue Jan 25, 2011 11:03 pm

Not just the ledger entry, you need to pay her as well.

by **section 44** on Wed Jan 26, 2011 12:09 pm

BlueSheep wrote:apply for her N.I. number?

How old's your wife?

by **Jack01** on Sat May 07, 2011 9:12 am

I think that your wife is backing you just like the employee you may hire otherwise , So all is need to you , provide her the salary slip with the total description of tax,provident fund,basic salary etc headings.
This invoice will be helpful to show her as an employee and NI required.