Paying a family member whos claiming pension

[jtufty]

Hi

Im a freelance copywriter. Im starting to get overwhelmed with the work, so Im looking to offload the 'easy' bits.

I was discussing with Mother last night, and she is more than capable of doing the work, and has a lot of time on her hands, and it would do her good to have something to stimulate her brain.

But Im not sure - from an accounting/tax perspective - what she'd need to do. She is claiming state pension, and has a bit of income from her ISAs, but apart from that has no other income.

I would be looking to pay her about £5k per year. This may only happen this year. Or it may continue into further years depending how it goes.

I think the state pension is about £11.5k, and the BR doesnt start until you have an income of £12.5k.

So does this mean I can pay her only £1k without her needing to inform HMRC? If I pay her more, is there a simplified self assessment form she can fill in?

Any guidance gratefully receievd.

Thanks

[AGoodman]

Yes, she can receive £1k without any obligations.

After that, you either need to operate payroll or, possibly (as the work would be ad hoc), she would need to register and pay tax as self-employed.

I'm not aware of any short form. Registering and submitting a return as SE is not that hard. It's all online so you may need to help her if she isn't technically minded (or get help if you are not technically minded!). Registering probably takes an hour max and a return about an hour once you have the info - which should be pretty straightforward here.

[jtufty]

Thanks so much! Very useful. Ill have a think on it.