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Where Taxpayers and Advisers Meet

Invoicing my wife's freelancing work via my limited company?

CoachHouse
Posts:1
Joined:Sun Jun 21, 2020 12:22 pm
Invoicing my wife's freelancing work via my limited company?

Postby CoachHouse » Sun Jun 21, 2020 12:28 pm

Hi all

I have my own limited company where I am the sole director and shareholder. My wife has been asked to do some freelance work which is totally unrelated to my company or business. My question is, is there any possibility of her using my company to invoice through somehow to avoid her having to set herself up as a freelancer? Not to avoid any tax payments, just to make her life easier as she already has another (employed) job.

Thanks in advance.

Mike

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Invoicing my wife's freelancing work via my limited company?

Postby jerome.lane » Mon Jun 22, 2020 8:42 am

Hi, there’s nothing to stop your company billing for the work (Subject to any legal considerations such as insurance and professional indemnity) but your wife will still need to prepare a tax return or notify HMRC if she is paid by your company. It’s not too difficult to set up as self employed or report casual income and it’ll be easier for her to claim expenses without confusing your own accounts. There’s also the £1,000 personal trading allowance to consider if she’s not got too many expenses. The NIC and income tax position for your wife will depend on her other income. It might be worth discussing the best option with your accountant or tax advisor.
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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