You are allowed to claim a reasonable salary for a spouse or partner who helps in the business. Their duties could include answering the phone, going to the bank, bookkeeping, or other administrative tasks. The salary must be paid to them through PAYE, and it must be realistic for the duties they are performing.
It would be wise to note the number of hours worked and level of responsibility so that you can justify their salary if you ever need to. For example, it would be difficult to justify a £40,000 salary for an administrative worker who only works 5 hours a week.
Anyone you employ in your business, even if they are a family member, will need to be paid through PAYE. Income tax and National Insurance contributions will need to be deducted from their pay if they earn over a certain figure, and employer’s national insurance contributions may also be due. PAYE and National Insurance will need to be paid over to HMRC quarterly. Operating PAYE can be complex – you can read more about this here.
