Paying the wife to "manage" our rented property

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    Paying the wife to "manage" our rented property

    I have one rented property and I manage it myself.

    Do any of you "pay" your wife/husband etc to manage your rented property?
    I'm just starting to put together some figures for the tax man and was wondering as to what is a reasonable amount to declare for this.
    10% of the monthly income ?

    Many thanks for any of your insight on this.

    #2
    Obviously you can pay them if they do actual work.
    Since you say that you manage the property yourself, I can only assume that what you propose would be a tax scam (assuming spouse is on a lower income tax bracket than you).

    Comment


      #3
      Yes, in theory.

      But surely easier to pay her for actual work (admin etc)than merely 10% lettings fee.

      Is she an employee or self-employed? If the former, you may need a PAYE Scheme, Employer's Liability Insurance etc. Payment into her sole bank account etc etc.

      Comment


        #4
        Do you pay your wife for doing the housework ?

        The best way is to give your wife a 20% share in the property and let her keep all the rental profit .

        Comment


          #5
          For married couples, the rental profit share is the same as the beneficial ownership share.

          The only exception is a "reverse Form 17". Married couple have joint Legal ownership; this means the split is automatically 50:50. One spouse transfers (say) 49% to the other = 1:99 split,by DOT. But do NOT file Form 17 with HMRC.

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