Form 11 - saving tax for jointly assessed clients.

Allahan

I have two clients (jointly assessed) where one is a higher rate tax payer and the other is in the lower band. The lower band tax payer has a sole trade in painting and tiling.  They have multiple rental properties where half the profit is obviously taxed at the higher rate. Is there anything stopping me from having the lower rate tax payer (who is a painter, decorator and tiler) invoicing the rental properties for his services? In effect the reduction of renal profit at the higher rate would be reduced.

They also have a son who also has a trade (lower rate tax payer). If he was to carry out the maintenance work/management of rental properties could he invoice his parents for his work? This would increase his tax at the lower rate but save tax at the higher rate for his parents. 

All help is greatly appreciated

Bold Abdu

Tiler can't invoice the rental property that he owns himself.

Son can invoice parents for work carried out.

exaisle

Bold Abdu wrote: »

Tiler can't invoice the rental property that he owns himself.

Son can invoice parents for work carried out.

He cannot invoice parents for his time, but he can invoice them for materials because he's simply passing on the cost.

Bold Abdu

exaisle wrote: »

He cannot invoice parents for his time, but he can invoice them for materials because he's simply passing on the cost.

He can invoice parents for his time if he's charging his parents for his time.