Queries on Self-Employed employing his wife and treatment of tax.

[accsvalue]

Self-Employed individual wishes to employ his wife. Does he need to run a payroll and make paye/usc deductions or can he wait until he fills in his income tax return? I'm assuming no PRSI is payable.

Thanks in advance

 

[WindUp]

If "employing" her he needs to run payroll

 

[accsvalue]

Self-employed = sole trader, not ltd co. I don't understand why "employing" is in inverted commas.

 

[mandelbrot]

Well you can't have it every way - if you want to employ her then your an employer: PAYE / PRSI / USC should be operated.

And I presume "employing" is in inverted commas is because this is a commonly used tax avoidance mechanism. Generally used to maximise use of the standard rate band.

 

[Irish Spirit]

Class M rate PRSI would be applied though...so no PRSI payable but of course she in turn would recieve no stamps on her record.