Wife becoming fulltime mother - tax implications?

[devnull]

Hi,

My wife is going to quit her current job later this year and be a fulltime mum to baby devnull.

Currently we both pay into a joint account for house outgoings, and what is left in there is for us to spend or save.

Given that my wife's income will become 0, I will take over her contributions to her joint, but that leaves me with needing to setup a standing order to her for a few hundred a month for her own spending - petrol, baby stuff, etc etc.

From my point of view, this seems pretty straightforward, i transfer her the month at the start of the month into her personal account and that's that. FWIW I'm a higher rate tax payer and we don't qualify for child benefit - I had to do the bizarre process of applying for child benefit and not choosing to receive the payments.

But will transferring this money every month to her cause us any tax issues?

Thanks all!

[Eric Mc]

Are you an employee?

[devnull]

Eric Mc said:

Are you an employee?

Yes, standard PAYE corporate drone.

[Eric Mc]

The answer remains "no" then.

[Mr E]

I’d take the child benefit and then do a self assessment every year to return it. Treat it as a paperwork intensive zero interest loan.

If you’re out of work for any reason part way through the year you can’t get the payments she hasn’t taken back. I think it also does something to maintain her NI status as well, but that might be wrong.

[Deesee]

Have a look at HMRC/Marriage Allowance if she's not going to be using it..

https://www.gov.uk/apply-marriage-allowance

[sociopath]

You can transfer part of her tax allowance to yourself.

Other than that you seem to be complicating it, can't she just use the joint account when she needs it?

You're having a baby together, worrying about what account you each use seems a bit daft.

[adam.]

sociopath said:

You can transfer part of her tax allowance to yourself.

Other than that you seem to be complicating it, can't she just use the joint account when she needs it?

You're having a baby together, worrying about what account you each use seems a bit daft.

This.

Mr and Mrs Adam have one joint account, my salary goes in there. She spends what she needs to keep the home and girls going, and does all the book-keeping.

I have a 'toys' account that is mine, but it's light use.

[devnull]

Thanks all for the advice. Not worrying about it as such, but thought I'd ask the PH hive mind before investigating further.

I am very fine with a straight 'no'.

In terms of using the joint or not - i don't really mind. It's more a case of keeping to an existing workflow we have of how we run the accounts.