Accountant appears to have let me down?
I have just received back my accounts from who I thought was a very good Chartered Accountant . I have been looking for ways to reduce my tax bill and came across Property118 advising ways to reduce liability.
One of the ways was to distribute some of the rental profits around the family using your spouse or partner. My accountants know that my husband works in the properties and yet when I had a meeting many years ago they told me that HMRC would never except me paying my husband a wage.
They sat and laughed at me!
The properties are in my name only.
The other day my accountant spoke of setting up a trust. He never gave any advice on being able to pay my husband to manage my properties.
Before I speak to my accountants I would be glad of some advice please.
Jan
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Disappearing Tenant
Member Since July 2013 - Comments: 1264 - Articles: 1
4:26 PM, 3rd August 2014, About 12 years ago
Trusts do not necessarily save tax, they also have to be administered a ta cost and pay tax on their income.
Also you can’t pay yourself and deduct this for tax so presumably this applies to your spouse.
Not sure I understand your question as the accountant hasn’t said you can deduct wages for your husband. Maybe he considers a trust to be a separate legal entity like a limited company.
Member Since July 2013 - Comments: 197
12:30 PM, 1st September 2014, About 12 years ago
Reply to the comment left by “shakeel ahmad” at “26/07/2014 – 18:00“:
Yes I know what you are saying . But that depends on how big my portfolio is and incomes from rents . I will be taking more advice from another accountant as I am cheesed off waiting for mine to sort it out .