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Taxation Advice

Marriage Allowance

Marriage Allowance lets you transfer £1,190 of your Personal Allowance to your husband, wife or civil partner – if they earn more than you.

This reduces their tax by up to £238 in the tax year (6 April to 5 April the next year).

Employing your spouse in the business

If you are self-employed and your spouse helps out with general administration, or any other role, it is quite legitimate to pay your spouse a salary.

However, there are a few rules that need to be followed, such as how much to pay your spouse and have evidence that the payments were made during the year.

Low interest loans provided by employers

It may be possible for a company to lend an employee up to £10,000 with no tax implications for them, provided they are not a director. This can be useful if say the employee needs to buy his company car to avoid benefit in kind tax charges.

Recover VAT

Recover VAT on invoices that you have paid or received before you registered for VAT by including the input VAT on your first return. Make sure you have the VAT invoices and keep a schedule of the adjustments you have made. Be careful though, there are time limits and rules for this recovery measure so be sure to speak with your accountant!