Can a sole trader put his wife on PAYE thereby wideing their 20% band. What stamp applies A or S. I always thought that for this to happen a partnership would have to be formed. Recently a tax office employee told me that it was common for this to happen and that it was ok.
But if she owns more than 15% then her Tax Credit will be considerably less which defeats the purpose of the exercise.You could look at the possibility of her joining the business as a partner, then she would pay Class S prsi, which could be benificial if she was to apply for the pension.
But if she owns more than 15% then her Tax Credit will be considerably less which defeats the purpose of the exercise.
The OP is a sole trader, not a limited company.
But even if it's feasible, is it worth it? You increase your 20% band by a maximum of 25k, leading to a maximum income tax saving of €5,250 (the difference between the tax due on 25k at the higher and lower rates).
The OP is a sole trader, not a limited company.
But even if it's feasible, is it worth it? You increase your 20% band by a maximum of 25k, leading to a maximum income tax saving of €5,250 (the difference between the tax due on 25k at the higher and lower rates).
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