I've started paying my wife, a director of my limited company with a 10% shareholding, a salary. But I've found that I need to pay employer's PRSI on this. Is there a way to avoid this? My wife also has PAYE income.
I did some analysis and I understand that if I change our shareholding to 50/50, she will then pay class S PRSI and thus no employer's PRSI is due. However, this has a few knock-on effects including losing her PAYE tax credit (and gaining the self-employed tax credit), she'd need to file a form 11 once per year and lose some entitlements to state benefits.
Is there an easier way to avoid paying employer's PRSI? And if not then is there any important point I'm missing from my analysis above?
I did some analysis and I understand that if I change our shareholding to 50/50, she will then pay class S PRSI and thus no employer's PRSI is due. However, this has a few knock-on effects including losing her PAYE tax credit (and gaining the self-employed tax credit), she'd need to file a form 11 once per year and lose some entitlements to state benefits.
Is there an easier way to avoid paying employer's PRSI? And if not then is there any important point I'm missing from my analysis above?