Accounts query - employed & self employed

[stargazer1]

My DH is a self employed carpenter. I obviously am now a self employed childminder since May this year. Hubby has been to accountant today and accountant has told him that even tho my profit this year is going to be minimal (at the mo it is around £50 per week on average), if both of our profits go over £8,000 ish, I will have to pay tax? Is this right? I thought we both had a personal allowance? Eeek, panicking now that even tho my profit will be about £2,500 (estimated) this year, I will end up with a fat tax bill too! (I dont use accountant by the way, tbh so far I havent needed to as I find my accounts fairly straight forward. Wondering now whether I should be).

[cathtee]

Hi both myself and my hubby are self employed and we both have personal allowances for our tax. My earnings do not affect his tax and vive versa we both submit our own accounts on line and I think there is a question about sharing tax allowance but you just decline and have one each.

Please don't panice wait for Mr Anchovy to reply he will put you right and if i'm wrong:panic::panic::panic:

[stargazer1]

Ahhh thank you, thats put my mind at rest. I really couldnt see how what I earned had any bearing on what he earned when we are not in business together. Hubby is terrible at passing on messages, our conversation went basically me saying "are you sure thats what the accountant said?" and him saying "yeah....I think". Hopeless!

[MrAnchovy]

You both get your own allowance for income tax (£8,105) and threshold for Class 4 NI (£7,605) and this cannot be transferred between you.

However if you are a partner in or employee of your husband's business this would affect the postition - is this what the accountant is getting at?

[stargazer1]

Thank you Mr Anchovy!! That clears it up. My mother in law is an employee of my father in laws carpentry business (and my hubby works for that company, self employed). I have a feeling that when hubby was speaking to accountant, the accountant thought I was going to be working for them. Thanks for clarifying, thats so helpful.