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tigwig | 13:08 Mon 03rd Sep 2012 | Business & Finance
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I am a childminder and from today my husband is working with me as an assistant. He has registered as SE like me but I cannot work out the best amount financially to pay him. As I am not employing him it doesnt have to be the NMW and at the moment I couldnt even afford to pay him that.
So whatever I pay him goes down as an expense for me on my tax return meaning I pay less tax. But the more I pay him obviously the more he will pay tax on. I dont know if it would be better to have him working less hours than me and earning less or to pay him simply the extra money that we will get from taking on the additional children?
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are you both normal rate tax payers? If so, it shouldn't make much difference to your household income
By the way you describe it you ARE employing him and the Revenue would be within their rights to insist on him being treated as one. If he works for you, only for you and you decide when he works then he's an employee.

Any particular reason why you want him to be separately self employed? The obvious solution would be to make him a partner in your business. Then you can contrive the profit share however you liked at year end to be most tax advantageous.

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