Wife of Director - PAYE employee

I

Irldigi

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Can anyone clarify this......

My friend and his wife work in a business together. He is one of two directors of the company.

The wife was told by an accountant that she could not use PAYE tax credits for this income, due to the fact that her husband was the director. It is her only employment..... Is this correct ?

Surly the wife is free to work whereever she get work ????
 
I believe that the accountant is correct. Spouses of proprietry directors are not entitled to the paye credit.
 
she should register as self employed and invoice the company for her work.
 
Irldigi said:
Can anyone clarify this......

My friend and his wife work in a business together. He is one of two directors of the company.

The wife was told by an accountant that she could not use PAYE tax credits for this income, due to the fact that her husband was the director. It is her only employment..... Is this correct ?
Click to expand...
Yes it is correct.
[broken link removed]

Irldigi said:
Surly the wife is free to work whereever she get work ????
Click to expand...
Of course she can work where ever she wants
 
setemupjoe said:
she should register as self employed and invoice the company for her work.
Click to expand...

It would be better to look at the situation in more detail before making the above decision.

Are they jointly assessed?

What level of salary will the husband be taking from the business?

Will she have to register for VAT if she is self employed?

She will incur additional charges, such as accountants fees that she would not have as an employee.

Will the revenue "allow" her to be self employed? They do have procedures in place for deciding who is self employed and who is an employee.
 
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