Payment to spouses for admin work
By Marc Sevitz · Updated
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.
Yes you can, provided she adds this income to her earnings and pays tax on it.
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?
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.