Medical benefit on low paid wife of director?

Medical benefit on low paid wife of director?

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I have a director client whose wife also works for him, on a wage under the £8,500 limit.  Their intention is for the company to provide medical benefit to the wife and her family.  Under normal circumstances if the total pay and benefit is still below the £8,500 there would be no taxable benefit but as one of the beneficiaires is the director I presume this won't fly?  In which case how would it need to be addressed? All put down on the husband's Plld?  Just his proportion put on his P11d? 

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By WillowTree
28th Aug 2014 10:01

Anyone know the answer please?

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Replying to NYB:
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By Portia Nina Levin
02nd May 2015 12:58

(No subject)

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Stepurhan
By stepurhan
28th Aug 2014 10:05

Patience

Your query has been up for less than two hours. This is hardly an urgent situation.

My immediate thought is that it will be taxable as a benefit in kind on the director, given it is being granted to a close family member. Employing said close family member at a low wage is almost certainly not enough to counter this.

Incidentally, are you meeting minimum wage for the wife?

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By neileg
28th Aug 2014 10:06

Commercial reality

Would it be usual for an unconnected person doing this job on the same pay to be provided with this benefit? If not then the benefit is provided because she is the wife of the director and the benefit is assessable on the director.

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By WillowTree
28th Aug 2014 10:35

Thanks all. Sorry for my impatience!  I was too busy to notice I was being a bit OTT.

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