Question: Tax implications of doing some paid work for my wife

[Laundromat]

My wife and I are both self employed. I have been doing some work for my wife and we are looking at the implications for me invoicing her and her paying me for the work I have done.

Does anyone know if there are any issues with doing this and whether we need to do anything in particular to demonstrate to the Revenue that it is bona fide work which I am being paid for.

Thanks for any help you can give me.

 

[Graham_07]

There should be no need to do anything different to that which you would do for any other customers. It would be important that normal commercial terms are observed and the transaction is carried out at "arms length" values, other than that, I see no particular Revenue issues. Such transactions do happen.

 

[Laundromat]

Thanks Graham_07 for your reply

Could you explain a bit more what you mean by "transaction is carried out at "arms length" value"

 

[Graham_07]

Thanks Graham_07 for your reply

Could you explain a bit more what you mean by "transaction is carried out at "arms length" value"

The transaction would be at terms no more or less favourable than those you offer to other customers. So if you charge a customer €1,000 for a particular job then charge your wife €500 or €2,000 for the same job then there may be the perception of using the transaction to make tax individualisation work better for you which could be tantamount to tax evasion. Basically do what you normally do in the way you normally do it for the price you normally charge everyone else.