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Off set tax against wife
-
Boringharvey
- Posts:1
- Joined:Fri Feb 21, 2020 2:01 pm
Hi I’ve been self employed and completed my Self Assessment for the past 14 years. This financial year (ending April 2020) my wife decided to take a career break and subsequently started to help me out. I don’t expect this arrangement to be permanent, however I’m assuming I can off set some of my tax against her. I don’t pay her a wage, but she more than earns her crust by answering the phone, doing all my admin and during busy times she is out on the road with me. I’ve asked HMRC and they’ve advised me I can only off set £1250.00 against my tax! This doesn’t seem fair! Any advise would be appreciated. Thanks
Re: Off set tax against wife
It may just be wording but I think you have misunderstood slightly.
You cannot use any of your wife's allowances however your wife could apply for Marriage Allowance and by doing so she will lose £1,250 of her Personal Allowance. How this will impact your wife depends entirely on what taxable income she has in the 2019/20 tax year. It may well make no difference whatsoever but she may have to pay £250 more in tax.
You won't get an additional Personal Allowance but will get £250 deduction from your income tax liability.
You cannot use any of your wife's allowances however your wife could apply for Marriage Allowance and by doing so she will lose £1,250 of her Personal Allowance. How this will impact your wife depends entirely on what taxable income she has in the 2019/20 tax year. It may well make no difference whatsoever but she may have to pay £250 more in tax.
You won't get an additional Personal Allowance but will get £250 deduction from your income tax liability.
Re: Off set tax against wife
Why don’t you pay her for the work she does?
