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Payment to spouses for admin work

Posted 5 February 2016 under Tax Questions



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Andy says:
4 February 2016 at 21:21

I am self employed and work from home. My wife helps me with admin part time. Am I able to pay her a reasonable market fee and deduct this from my income. My wife also contracts for other companies. What the implications for preparing tax returns.

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TaxTimTaxTim says:
5 February 2016 at 7:45

Yes you can, provided she adds this income to her earnings and pays tax on it.


Andy says:
5 February 2016 at 10:56

Thank you. What disclosure is required on my tax return? Ie do I answer a question that fees were paid to my wife? Think I saw something about payments to connected persons?


TaxTimTaxTim says:
5 February 2016 at 11:45

She should invoice you and you would need to withhold 25% and pay that over to SARS as PAYE. You would need to register for PAYE. Else she must invoice you and declare this extra income as part of her taxable income in full. You would just show this as a deduction for salaries.


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