In short, Yes!
Your spouse can receive a salary for the administration work they do for your contractor Limited Company. The work need not be difficult and your spouse does not need to be a full-time employee.
What are the advantages?
The salary you pay to your spouse will be a tax deductible expense in your company’s corporation tax saving you 20% of the amount paid.
Your spouse will “clock-up” a year towards the state pension.
What are the disadvantages?
If you pay your spouse an amount at or near the personal allowance, then you will have to add your spouse to your payroll and run monthly RTI returns.
Are there occasions when you shouldn’t add your spouse to the payroll?
If your spouse already has employment that pays as much as the personal allowance then overall you will not save tax, or enhance their pension when you add them to the payroll – in this case they will just have to work for free! Remember the national minimum wage does not apply when you employ your family.