Updating post from Reddit.
I am a director of a limited company that owns and rents out a house.
My wife essentially manages the house and is an employee of the company, past year her salary was £9k.
Since the new chancellor is putting up the NI, can i claim employment allowance?
Does anyone in a similar situation as me claim the employment allowance?
Only one employee? on the face of it, it doesn't sound like your company will qualify.
Yes, just one employee.
I didn't see anywhere, where it said you had to have a minimum number or employees?
Is your wife a director? I assumed yes which is where the one employee thing kicks in, if not then should be ok.
Salary needs to be at least the secondary threshold, so likely need to nudge hers up a little if its exactly 9k
She isn't a director of the company, I am the sole director of the company. I was thinking of putting her salary upto £12.5k
If her other income works with that then its a good approach. Does she have an employment contract - check to make sure you don't fall foul of minimum wage legislation.
So working for my ltd is the only job she has.
I did create an empyment contract for her and last year I had my accountant put her wages through as £6k