Extra tax deductions for your spouse

One way to reduce your tax bill is to employ your husband / wife in your business. Be careful though, the Taxman won’t give you a deduction if the wages you pay are too high for the work done by your spouse.

Let’s say your spouse helps out with the bookkeeping, answering the phones, managing your diary etc. The best thing to do is to get a quote for the cost of employing an office assistant or secretary to do the role and then pay a similar hourly rate to your spouse.

Be sure to keep evidence of this quote, the duties and responsibilities of the role and the number of hours per week that the job requires. That way, when the Taxman asks the question, you will have the answer!