Search
  • Mr Paul Clifton

Families and business – why keep it all to yourself?

Updated: Sep 7



A very good (tax!) argument for bringing spouses and other relatives into the business is that they then also get to utilise their tax-free Personal Allowances and lower tax bands. Frequently this is done on a salaried basis but the self-employed also have the option to take on a business partner. If a person paying 40% tax brings his or her spouse (who has no other income) into the business, they can save over £4,000 in tax just by utilising the second Personal Allowance. Likewise for children. But remember that they must do valuable work in order to ‘earn’ a salary, otherwise HMRC will say the income really ‘belongs’ to the first spouse. HMRC arguably finds that more difficult with profit-shares between partners.

#familybusiness #profitsharing #tax

8 views

Contact Us

All Paul Limited

17 Longwood Crescent, Shadwell, Leeds LS17 8SR

Serving Alwoodley, Shadwell, Roundhay and more.

Telephone: 0113 225 2232

Email: Send us a message by clicking here.

Socialise With Us

  • LinkedIn App Icon
  • Facebook App Icon
  • Google+ App Icon
  • Twitter App Icon
  • YouTube App Icon

Skilled in

Sage 50 Accounts training

Member

ACCA Accountants in Leeds

Leeds Accountants, making a difference

© 2020 by All Paul Limited.        All Paul Limited is a company registered in England and Wales with company number of 08367537.

Director: Paul Clifton