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I am working full time in UK and don't have any other jobs or money sources except this full time job.
I have a bank account in HSBC UK.
My wife is going to register as self employed (freelancer) here in UK, and she needs a bank account.
We thought to make a joint account as an easy way to open a bank account since I have this account since 1 year.
My question now is:
She will get money from her new job to this bank account (the joint account). I need to understand about taxes, she needs to pay taxes her self before putting money in bank account or taxes will be taken from the bank account? if taxes will be calculated from the bank account this will be an issue because the tax ratio for my salary is different than what she will pay.

I just need some advises as I don't have any experience in these issues

  • I'd recommend opening a separate bank account just for working-self employed (especially if there are expenses related to business). It'll make your wife's life easier in the longer run. – trailmax May 17 '16 at 13:56
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The details of any bank accounts are irrelevant.

If you're self-employed, you submit your tax return to HMRC at some point after the end of tax year. HMRC then tell you how much tax you owe and when payment is due, and you then pay it. HMRC don't have access to your bank accounts.

Note that interest earned on a bank account is treated as taxable income, and banks normally automatically pay the tax due on your behalf, at the basic rate of 20%. If you're self-employed, you need to declare this income on your tax return. And in the case of a joint account, that interest is treated as being split equally.

  • These are great info, really helpful, what i am concerned is to don't appear as I am getting money in my account without paying taxes, while my wife will be paying these taxes from her own business money. – AME Feb 22 '15 at 13:57
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It's fine - if you are an employee, you will normally have all taxes deducted by the employer, and won't even need to complete a tax return.

Even if you do, all the figures will be on the P60 you get at the end of the year. If that's your only income, it's pretty easy to do.

Remember, your taxes and your girlfriends are totally separate. It also doesnt matter where the money goes - you could be paid in cash or into any account, it's the fact that you earn it makes it taxable.

  • In the question a wife is mentioned, your answer mentions a girlfriend. Does this change your answer? – mhoran_psprep May 17 '16 at 10:20
  • Only slightly. There are a couple of allowances and changes for married partners, most importantly the ability to transfer some tax-free allowance to the spouse. However, if both parties earn above the tax threshold, there's no benefit, and you can hopefully avoid filling in a full tax return. – GooKing May 19 '16 at 15:59
  • On the above about tax on interest - most bank account will deduct tax payable at source - this means that again, you probably won't need to complete a tax return. If the account is only in your wifes name, any interest earned is her liability. If the account is in joint names, any interest earned would be split between you. Note that since interest is deducted at source, it generally means you have already paid any tax owed. – GooKing May 19 '16 at 16:03

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