It's quite common for s/e earners to 'employ' their partner for tax reasons, though they may not do much work in the business (and her earnings in this case should actually have NIC & tax deductions). However, if he's getting IB, then he shouldn't be working (except permitted work) , so is the farm a going concern? If not, he's got no income to pay her. If he's employing others for the work to continue I see no reason why she can't resign her job to look after him. Are the figures you quote by any chance based on a previous year's accounts, eg 2006? If so, there's been a change in circs since then.....but this is a collision between what's best under bens regs and what's best under tax regs.
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