From: "Simon Jerram" 
Newsgroups: uk.finance
Subject: Re: Use Partner's Income Tax Allowance for Earnings?
Date: Wed, 19 Oct 2005 10:20:29 +0000 (UTC)
Injector-Info: news.mailgate.org; posting-host=195.108.191.118; posting-account=13021; posting-date=1129713825

"seajays"  wrote in message
news:1129715672.305990.148930@f14g2000cwb.googlegroups.com

> GSV Three Minds in a Can wrote:
> > Bitstring <1129669764.786801.23310@o13g2000cwo.googlegroups.com>, from
> > the wonderful person seajays@hotmail.com said
> > > - they could keep
> > >the money (paying tax if required based on their income), and I would
> > >get nothing.  Is it because we're married wife that this is a no, or
> > >have I got something else fundamentally wrong somewhere?
> >
> > You're fundamentally trying to evade paying tax. That is illegal. You
> > can arrange your affairs to minimise the amount you pay (e.g. the
> > partner can have all the savings in their name; you can give money to
> > your partner for them to buy their ISA with, etc.) what you can't do it
> > anything which is clearly and specifically done to evade tax due. If
> > you're going to do that, you might as well out-&-out defraud them, ask
> > for cash, and join the black economy .. just as (il)legal.

> But my point is, if this is income tax, but I don't receive any income
> from the work, what tax is there for me to pay?  If someone else
> receives the money then clearly they will have to pay income tax at
> whatever rate they need to do on the income they receive.  Of course
> the money they receive will then be theirs, not mine - but I'm happy
> with that arrangement! :-)

Er... have you read any of what's being said above?

There have been cases where couples have been taken to court
(Do a news search on the words "Arctic Systems Tax Wife") for
avoiding tax by over paying a salary or dividends to a non-active
partner.

The income is down to work you have done, you can give it to a third
party if you like, but only after you have paid your tax on it. 

I think the only legitimate way you can use her tax allowance is
for her to contribute to this work, i.e. by doing the books and
invoices, or even helping you out directly with your work.  But
even then you could only pay her so much.

There is, however, one way totally legal way you can avoid 100% of 
the tax on this extra income.  Donate it to charity.

Feel free to ask a tax expert rather than a number of faceless 
nicknames.


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