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Sole trader employing wife

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  • 11-01-2016 3:31pm
    #1
    myhen
    Registered Users Posts: 3 ✭


    Hello everyone. I am a sole trader as well as paye worker on over 42k so the tax on my sole trader is very high, at least 40% after expenses. Say I make 10k clear profit per year as sole trader can i pay my unemployed wife 5k (which means no prsi to pay) to do the invoicing and bookkeeping and then only pay tax on 5k. If this is correct then what else do I have to do when paying the wife if no prsi is involved, how much paye and usc would i have to pay on top of the 5000.


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    #2
    Gloomtastic!
    Registered Users Posts: 8,480 ✭✭✭Gloomtastic!


    Not 100% sure about this but as your wife's sole client you may be viewed as her employer by Mr Taxman. Also, if your wife is collecting unemployment benefits then they may be affected.

    Try and talk to a couple of accountants and get their views.....


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    #3
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    You are most likely currently jointly assessed, you need an accountant to work the most beneficial structure for your precise circumstances.


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