Question:
I would like to know if I can pay my unemployed mother who is 59 years old, to clean and manage the garden of my rented property. I have an agency to do the rent collection and liaise with the tenant, but I am finding I do more of the actual work. I will not continue with them after this tenancy. I would like to be able to help my mother if possible with a small income from the renting. She isn't self-employed or anything. What would be her tax position and mine if I employed her?
Arthur Weller replies:
Yes, you can do so, but in order to be an allowable expense that you can offset against your gross rental income the wage has got to be a realistic amount - the amount you would pay someone unconnected to do the same work. See end of www.hmrc.gov.uk/manuals/pimmanual/PIM2080.htm; and also www.hmrc.gov.uk/manuals/bimmanual/BIM47105.htm. Your mother will be liable to pay tax on her wage.
