Partner working for new business payment question

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I recently started my own business in mental health services. My partner is doing the admin work and managing my website. We have approximated her role to be 16 hours per week. I'm plan on paying her the £11.44 in line with the National living wage.

She is on zero benefits 

She doesn't have another job

Question: Does she need to apply to be self employed or how do I proceed with this arrangement to ensure we are in adherence with the relevant employment and/or tax rules. 

Thanks

Replies (13)

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RLI
By lionofludesch
14th Jun 2024 07:43

Employment status isn't just a choice to be made. It depends on the terms of engagement.

Your starting point is probably the HMRC employment status tool. What does that say?

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Replying to lionofludesch:
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By aberdeencabbage
14th Jun 2024 09:01

It says that option A is the way to go. But I'm not sure what that actually means I need to do.

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Replying to aberdeencabbage:
RLI
By lionofludesch
14th Jun 2024 10:52

What's option A? Employment?

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By bettybobbymeggie
14th Jun 2024 08:11

There may be one or two options available to you but I'd recommend talking this through with your accountant.

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Replying to bettybobbymeggie:
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By Paul Crowley
14th Jun 2024 10:31

+1
@OP Let the accountant take the strain
He would know whether YOU are self employed or operating a company.
But chances are that HMRC would consider the person to be more like an employee than running a business of her own.
A business of doing admin for my husband?
Why not consider the other options? There are more than you mention.

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RLI
By lionofludesch
14th Jun 2024 10:54

Mental health - it's the new bad back.

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Replying to lionofludesch:
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By FactChecker
14th Jun 2024 11:42

.. as in they're both supposed to be caused by stress?

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Replying to FactChecker:
RLI
By lionofludesch
14th Jun 2024 12:09

Hard to dispute.

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Replying to lionofludesch:
DougScott
By Dougscott
14th Jun 2024 13:43

lionofludesch wrote:

Mental health - it's the new bad back.

Are you taking the P*ss? I don't know what kind of arrogance makes you belittle mental health problems?

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Replying to Dougscott:
RLI
By lionofludesch
14th Jun 2024 14:07

I said it's easily faked.

If you disagree , that's fine. I'm not going to enter into a debate about it.

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Replying to lionofludesch:
DougScott
By Dougscott
14th Jun 2024 14:11

Insensitive comment at best.

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Replying to Dougscott:
RLI
By lionofludesch
14th Jun 2024 14:21

Accepted.

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DougScott
By Dougscott
14th Jun 2024 13:39

You don't say whether you are self-employed or a limited company or what your turnover and profits are or what tax band you are in. It is likely your partner is an employee but it could be she could be self-employed, and one may work out better than the other and it may be better to apy her a higher salary to utilise her personal allowance. If you are likely to be heading for higher rate tax then it would certainly be foolish not to take accountancy advice and even if you are under this level of income it would be worth seeking the advice of an accountant (perhaps recommended by one of your colleagues).

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