Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Spouse wages

02 June 2020
Issue: 4746 / Categories: Forum & Feedback
Excessive remuneration of a spouse by a business.

I am sure it is a fundamental and probably universal law that when throwing away old newspapers there is always an item that catches the eye and gets one thinking.

The story that leapt off the page in this case was of a company boss who had been banned by regulators for apparently transferring ‘excessive’ amounts of pay to his wife. It seems that the payments were for out-of-hours administrative support and occasional hospitality at home. Originally her pay was between £5 000 and £10 000 a year which was deemed not unreasonable but this rose to about £50 000 a year.

This started me worrying about some of my clients. To a large extent I have only their word that the amount they pay their spouses is reasonable. In cases where I deal with the...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon